Maker (MKR) Price Surges Above $1,500: On-Chain Analysis Reveals Key Indicators for Further Rally
The price of Maker (MKR) has surpassed $1,500 for the first time since May 2022, thanks to recent increases in network demand. MKR is the native token of MakerDAO, a decentralized finance protocol that issues the DAI stablecoin with a market cap of $5 billion.
Technical Modifications Have Seen MKR Global Adoption Reclaim 2021 Peaks
During the market crash caused by TerraUST in May 2022, MKR was severely affected. The MakerDAO team took swift action to modify the DAI stablecoin collateral mechanism by implementing a hybrid approach that includes mega-cap cryptocurrencies, collateralized stablecoins, and US Fed-issued debt instruments.
These modifications have proven successful, as on-chain data shows that MKR tokens used in daily transactions are approaching levels last seen during the bull market of 2021. Daily Active Addresses for MKR hit a two-month peak of 761 on October 2 and have consistently remained above 400 since September 26. This level of user participation indicates healthy organic growth within the ecosystem and suggests that MKR prices may reach new heights in the future.
Network Participants are Performing Economically Viable Transactions
In addition to increased user engagement, the MakerDAO network has seen a rise in daily transactions. Following the US Federal Reserve’s announcement of a rate pause on September 20, daily transactions on the MakerDAO network have significantly increased as investors take advantage of the attractive 8% DAI savings rate.
Tracking the number of confirmed transactions provides an estimate of economic activity levels on a blockchain network. The Maker network recorded 2,240 confirmed transactions on October 1 and has consistently exceeded 1,200 transactions since September 26. This consistent rise in network activity indicates growing demand for MKR tokens. As a result, the price of MKR has experienced a 15% increase between September 25 and October 3.
MKR Price Prediction: $2,000 Could Be the Next Target
The analysis of critical on-chain data suggests that sentiment surrounding the MakerDAO ecosystem is bullish, indicating that the price of MKR may continue to rally towards $2,000 if the bulls remain in control. The Global In/Out of Money Around Price (GIOM) data, which shows the entry price distribution of current MakerDAO participants, further supports this prediction.
If MKR can surpass initial resistance at $1,800, it has the potential to rally above $2,000. However, if the bears gain control and MKR’s token price drops below $1,200, this optimistic prediction may be invalidated.
Hot Take: Maker (MKR) Price Surge Driven by Increased Network Demand and User Engagement
The recent surge in the price of Maker (MKR) can be attributed to two key factors: increased network demand and user engagement. On-chain analysis reveals that MKR tokens used in daily transactions are approaching levels last seen during the 2021 bull market. Additionally, there has been a rise in daily transactions on the MakerDAO network as investors take advantage of the attractive DAI savings rate. These positive indicators suggest that the price of MKR could continue to rise, with a potential target of $2,000 in the near future.
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