Ethereum’s new high, coupled with a recent drop in network fees, are strongly driving DeFi growth. The Maker protocol token is one of the ones that has benefited the most from this, recently reaching an all-time high of $ 6,347.94.
Thanks to the enthusiasm, the total value locked in decentralized applications just hit a new all-time high of $ 121.34 billion.
At the time of writing MKR is trading at $ 5,430.63, accumulating a slight loss of 1.22% in the last 24 hours, but still maintaining a gain of 22% in the last 7 days.
In addition to the general positivism in the markets which in turn drives higher demand for loan products, some of the factors that have favored Maker include the recent update to its settlement engine and the possible expansion of the approved collateral list.
Maker is the issuing protocol of the DAI stablecoin, a token that recently saw its circulation increase to a maximum of more than 3.5 billion coins.
According to DeBank, Maker owns a total locked value of $ 11.8 billion, making it the 2nd largest DeFi platform, and the first on the Ethereum network.
Maker technical analysis
When we analyze the daily chart of the token Maker, we realize that the price is involved in a clear short-term uptrend, which has been the cause of the recent maximum reached.
With continuous lows and highs ever higher, the price of MKR has kept on rising. Now a correction of this trend is in process, which at the moment does not seem to have finished. Due to the strong momentum, the bulls are likely to press again soon to carry the token higher.
In the time frame with weekly candles we also see a clear uptrend, in this case in the medium term.
Currently a momentum of this trend is developing, and at the point where it is, it is quite widespread.
Saying that a major correction is going to start soon is a bit risky, trying to swim against the tide is never a very good idea. However, there is a good chance that in the near future we will see a relevant pullback before moving up further.
At the moment there is no sign that confirms that a fall is going to start. We are more likely to see the Token Maker make new highs first.
In case a fall begins soon, we would still see the bulls sooner rather than later exert pressure, and carry the price higher.
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