The starting point of 2024 has a positive outlook for the Maker (MKR) coin, suggesting that the year may be productive. Activity has increased, according to on-chain data, indicating a potential positive trend.
Since the start of the year, the number of active addresses on a daily basis—a crucial indicator of user engagement—has increased significantly.
Presently, there are more than 600 addresses trading MKR, which is a 4% rise from the original 590. This increase in involvement suggests that there is increasing momentum and interest in the token.
Moreover, since the beginning of the year, there has been an over 5% increase in the establishment of new addresses only for MKR trading. This inflow of new players gives the ecosystem more room to flourish and more liquidity.
MKR Daily Active Addresses. Source: Santiment
2024 is off to a good start for MakerDAO, the driving force behind the DAI stablecoin in the decentralized finance (DeFi) space.
Analysts are upbeat, projecting steady returns and even calling it a safe pick given the volatile state of the cryptocurrency market. Still, let’s examine this more closely before jumping on the MKR bandwagon.
One of MakerDAO’s strongest points is its mature ecosystem. A key component of DeFi lending and borrowing is the MKR token, which controls the DAI stablecoin.
MKR market cap currently at $1.6 billion. Chart: TradingView.com
This mutually advantageous association has bestowed MakerDAO with considerable sway and a foothold in the market. However, to attribute its future exclusively to the Bitcoin ETF decision, as some contend, offers an inadequate perspective.
Although the crypto markets could benefit from an authorized Bitcoin ETF, it’s important to understand how complex and interwoven the sector is.
Regulations, the general use of DeFi, and even rivals’ actions impact MakerDAO’s trajectory. Ignoring these things could result in unrealistic expectations.
According to Coinglass data, there has been a notable spike in liquidations as a result of Maker’s hike from a minimum of $1,826 to a maximum of $1,928.
Source: Coinglass
Source: CoinglassThe sudden surge in MKR’s value has forced the liquidation of more than $500,000 worth of short bets, defying the sellers’ gloomy projections.
There could be both good and negative effects on Maker’s pricing if the number of profitable addresses rises. Some 74% of addresses, or 69,400 addresses, are in profit, which is a two-year high, according to IntoTheBlock data.
This increase could lift buying pressure for the cryptocurrency as hopeful Maker holders may want to stockpile more tokens in expectation of future price improvements.
As the Maker market witnesses a surge with over 600 addresses completing MKR trades in a single day, the momentum appears robust and promising. This heightened activity signifies growing interest and participation in the MKR ecosystem.
Featured image from Freepik
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