Rising prices and interesting developments: An analysis of the dynamics behind the recent increase in the MKR token in the Defi market
Rising prices and interesting developments: An analysis of the dynamics behind the recent increase in the MKR token in the Defi market
The price of the maker (MKR) token has increased significantly in the past few days and has thus caused a sensation in the Defi market. Maker is one of the best-known platforms in the defi area and enables users to shape the stable coin DAI against crypto-assets as security. The impressive winnings of maker last week were triggered by a vote that led to an increase in returns to the Dai stable.
There are several interesting factors that could have contributed to this price campaign. On the one hand, the Makerdao Community voted in mid-June to increase the DAI Savings Rate (DSR) from 1% to 3.49%. This increase could have created additional incentives for the users to keep and lend it, which in turn increased the demand for MKR.
In addition, Nansen data show that experienced and institutional investors are increasingly investing in MKR. The "Smart Money" stocks on MKR-TOKEN have risen sharply since May, with tokens worth around $ 16.7 million in June. This could be further proof of the increased interest of investors in MKR.
The trade volume of MKR on crypto exchanges has also increased last week. From the beginning of June to the beginning of July, the trading volume of $ 10-20 million rose to a high of $ 100 million. This increased trade volume could be another indicator of the increased interest of investors in MKR.
Similar price increases as with maker can also be observed when compound tok token from Compound. The compound token led the weekly profits in the top 100 tokens on Coingecko and recorded an increase of 76.1% in one week. This could be due to speculation that was triggered by a new project by the compound founder Robert Leshner. He started a company called Superstate that spends tokenized government bonds and promote the integration of Defi with the traditional financial system.
There was also indications of a short squeeze in the derivative market that could have influenced the price of the comp-token. Liquidations, especially on the short side, increased significantly at the end of June and achieved three-month highs.
In addition to the specific factors concerned, which affect maker and compound, the general market trend could also have contributed to the positive price development. Ethereum (ETH), the backbone of many defi projects, has exceeded its highest level from June, which has strengthened the trust of buyers in the market. The Defi Pulse Index of Index Coop, which consists of the top 10 defi tokens after market capitalization, has also increased by 14.5% in the past 7 days.
In summary, it can be said that both specific developments within the maker and compound ecosystem as well as general market trends could have contributed to the recent price increase of MKR and Comp. It remains to be seen whether this continues upwards, but the latest developments clearly show that the interest in defi and especially in maker and compound increases.