Amidst the recent revival of the cryptocurrency market, the Maker protocol and its native token MKR have faced challenges. After reaching a yearly high of $4,070 in April, MKR experienced a consistent downtrend, dropping to as low as $2,440 just one week later. To gain insights into the potential price movements of MKR in the near term, let’s examine the protocol’s key metrics.
The Maker protocol recently shared updated metrics that highlight its health and growth over the past month. One important metric is the current supply of DAI, the decentralized stablecoin governed by MakerDAO’s blockchain. With over 5 billion DAI in circulation, this metric reflects the total amount of DAI created and in use.
Total Value Locked (TVL) is another significant metric, representing the dollar value of assets locked within the Maker protocol. Despite operating on just one chain, Maker has approximately $8.76 billion locked, making it the fourth-largest decentralized finance (DeFi) protocol. The majority of these assets are locked in the ETH-C Vault type, with around $2.07 billion worth of ETH.
To achieve a complete MKR burn, the system surplus needs to reach 50 million DAI. On the other hand, the Dai Savings Rate (DSR) indicates the rate at which users are rewarded for locking their DAI within DSR contracts. Currently, the DSR cost amounts to approximately 153 million DAI.
Currently, most DAI remains within DeFi, with externally owned accounts (EOA) and the DSR as the top use cases, holding over 2.3 billion and 1.96 billion DAI, respectively. In terms of revenue generation, SparkLend D3M and Spark’s MetaMorpho D3M are leading the way, generating an estimated $155 million in annual revenue based on their deposit APYs. This demonstrates the importance of various collateral types and revenue streams within the Maker ecosystem.
Looking ahead, the upcoming Endgame Plan, which proposes to revamp Maker’s governance and tokenomics, is expected to act as a catalyst for the MKR token, potentially boosting its price. The plan aims to establish a self-sustainable equilibrium in the ecosystem.
Currently, MKR is trading at $2,612, experiencing a slight decline in the past 24 hours and 30 days. The recent trading volume has also decreased by 4.7%, totaling only $72 million compared to the token’s $2.4 billion market cap.
If the Endgame Plan generates renewed interest in MKR, the token’s ability to surpass higher levels will be impeded around the $2,660 level. Resistance levels at $2,710 and $2,760 would need to be overcome before potentially retesting the resistance at $2,845. On the daily chart, $2,905 and $2,950 act as the final hurdles before reaching the $3,000 milestone.
It remains to be seen whether developments in key metrics, coupled with the anticipated Endgame proposal, can stimulate significant bullish momentum for MKR, allowing it to overcome resistance levels and regain its bullish trend.