Maker (MKR) Unleashed: Price Soars 12% In One Day
In anticipation of the announcements made by the Ethereum-based Decentralized Finance (DeFi) lending platform team, the price of Maker (MKR) has experienced a remarkable surge of over 12% within hours. Now, what do these developments entail, and how will they impact the future of Maker?
Maker Empowers SubDAOs?
On August 28th, the Maker team made a significant announcement regarding their plans to introduce SubDAOs in South Korea. This move represents a critical evolution for MakerDAO, marking the “final effort” to unlock the potential of Decentralized Autonomous Organizations (DAOs).
According to the announcements made on August 28th, introducing SubDAOs is expected to streamline, innovate, and strengthen the Maker ecosystem, paving the way for increased opportunity and growth.
SubDAOs, which stands for Subsidiary Decentralized Autonomous Organizations, are expected to play a pivotal role in the next phase of MakerDAO’s development. These entities will leverage liquidity allocation from the Maker Protocol, exploring various yield opportunities across the financial landscape.
From decentralized finance protocols to real-world asset solutions, SubDAOs aim to harness the potential of diversified investment strategies.
Per the announcement, this presents a unique opportunity for Korean crypto leaders to engage with the forefront of DeFi developments. Participants will have the chance to be part of forming their own SubDAO or contribute to existing ones.
This involvement offers insights into the success story of Spark Protocol, the first yield product incubated by a future SubDAO. Spark Protocol has demonstrated significant achievements, such as boasting high liquidity, industry-leading borrowing fees, and managing hundreds of millions in liquidity.
Additionally, the event encourages forging connections between leaders in centralized finance (CeFi) and decentralized finance. These connections are expected to help bridge the South Korean community to SubDAO token acquisition and farming opportunities, fostering collaboration and growth within the ecosystem.
The move into SubDAOs signifies MakerDAO’s commitment to cultivating innovation across the industry. Participants can explore “cutting-edge” decentralized finance protocols and real-world asset solutions.
The MRK Rally, How Close To A New Annual High?
The recent announcements have sparked a surge in MKR’s price, following a decline that began on August 2nd, which coincided with the token reaching its yearly high of $1,371.
Subsequently, MKR experienced a drop, reaching a low of $984 and breaching the significant psychological level of $1,000 and its 50-day Moving Average (MA), which had previously provided substantial support for the token.
However, with the recent announcements and the excitement surrounding the protocol’s new phase and increased liquidity entering its ecosystem, MKR has surged by an impressive 12% within 24 hours.
Currently, MKR is trading at $1,170, surpassing and regaining its 50-day MA, which has played a pivotal role in driving Maker’s rallies throughout the year. Moreover, according to Token Terminal data, MakerDAO’s Total Value Locked has reached $5.16 billion, indicating a 3.03% uptrend in recent days.
Considering these developments, the question arises: Is MKR poised to reach a new yearly high?
During MRK’s rally, the token reached as high as $1,230 but encountered a strong resistance wall at that level. However, suppose the protocol’s developments continue to attract liquidity, and MKR bulls can defend its 50-day MA as support, while further consolidating above the $1,260 level.
In that case, there is a possibility that, in the coming months, MRK could achieve a new yearly high above $1,375 and even touch the $1,400 level, a threshold not reached since May 2022.
Featured image from iStock, chart from TradingView.com
