August 24, 2023

MKR Price Soars as Spark Protocol Inflows Surge

Von admin

• Maker’s MKR price has rallied in the past few days due to rising demand for its Dai stablecoin.
• Spark Protocol is seeing strong inflows because of its higher rates, leading to a surge in Dai market cap.
• The MKR price is currently trading slightly below the 50% Fibonacci Retracement level but may continue rising towards the key resistance level at $1,150.

Maker (MKR) Price Regains Momentum

Maker’s MKR price has staged a strong recovery in the past few days as investors cheered the rising demand for the Dai stablecoin.

Dai Demand Jumps

MakerDAO is one of the biggest players in the blockchain industry and is known for its Dai stablecoin. Data shows that depositors are earning a return of as much 8% through Spark Protocol, which was launched by MakerDAO and allows people to borrow Dai against their collateral and swap other coins without slippage.

Money Market Funds Affecting Rates

DeFi protocols like MakerDAO are facing the challenge of high-interest rates since money market funds are now generating a higher rate thanks to Federal Reserve policies. Some funds are returning as high as 6%.

MKR Price Forecast

The 4H chart shows that MKR dropped sharply last week but has recovered since then. It remains slightly below the 50% Fibonacci Retracement level but there is potential for it to continue rising towards $1,150.

Conclusion

The increasing demand for Dai is driving up interest in Maker (MKR) with prices staging a strong comeback from last Friday’s lows. The coin remains slightly below key levels but could extend gains towards important resistance levels if money market rates remain high.