Maker (MKR) Registers 15% Gains In The Last Week, What’s Pushing It?
March 07 2023 - 8:04AM
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It is rare to see any cryptocurrency sustaining its gains amid the
ongoing onslaught in the crypto market. A majority of coins in the
market are trading in the red zone today, March 7, and have given
up their past week’s gains. Bitcoin is a typical example of coins
that have surrendered almost 100% of their past week’s and month’s
price gains. But Maker (MKR) emerged among the top weekly gaining
coins, registering at least 20% last week. At press time, the token
holds a 7-day price gain of 15.88% and a 16.9% 14-day price
increase. Related Reading: XRP To $1? Summary Judgment Is Very
Close, Lawyers Predict MKR Sustains Gains Amid Bearish Sentiments
On Monday, March 6, Maker saw a nearly 11% price increase, gaining
over $92 and closing the day at $949.95. The price rally could be
due to the ongoing ‘buy DAI, win DAI’ reward pool. Despite
trading with a 4.3% price decline in the last 24 hours, the Maker
token sustained most of its past week’s gains. The coin recorded a
28.3% gain over the past 30 days. With its 14% weekly gain, MKR is
outperforming the global crypto market, which has reduced by 3.10%
over the past seven days. MKR’s price is currently hovering at
$901.35 in the daily chart. | Source: MKRUSD price chart from
TradingView.com Reduced Borrowing Fees And Other Activities Support
Maker Price Considering the increased asset volatility in the
crypto market lately, Maker’s performance is impressive and against
the odds. There must have been improvements supporting it to beat
the market-wide bearish trend. MKR is a governance token for
paying borrowing fees when users take loans by locking-in
collateral in exchange for DAI (Maker’s stablecoin). The chief
factor influencing the MKR token’s price action is the reduced
borrowing fee by Maker DAO. Maker DAO reduced its annual
borrowing fee for Rocket Pool ETH to 0.5% while increasing the
maximum debt ceiling from 20 million DAI to 30 million DAI. This
action would allow users to borrow more. Aside from the
annual fee for Rocket Pool Ether borrowing collateral, it also
reduced the borrowing fees on several other loan offerings. These
offerings caused an uptick in Maker token’s trading volume while
pushing its price as more users joined the network. There have been
several other developments on Maker DAO, which might be responsible
for MKR’s tenacity amid the recent downtrend in the market. Maker
DAO’s real-world assets have been gaining more popularity. On
February 24, the protocol published a report showing that its
real-world assets (RWA) recorded increased transactions, yielding a
DAI loan balance of over $600 million. Related Reading: These
5 Cryptos Are Set To Break The Bears’ Backs This Week According to
the announcement, Maker DAO generated $2.5 million in fees from RWA
deployments. This achievement suggests that Maker is gaining more
users, which could be rubbing off on the MKR token. Most
recently, Argent HQ, a DeFi protocol, partnered with Ramp Network
to initiate a reward pool. The reward pool allows users to win DAI
when they buy DAI via in-app purchases on zkSync Lite. These and
other recent developments could be among the factors pushing MKR’s
price. Featured image from Pixabay and chart image from Pixabay
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