Santiment, the crypto market data analysis company, has published data suggesting upward activity around MKR, the token that underpins the MakerDAO decentralized finance (DeFi) project.
On May 20, Santiment released data indicating a bullish divergence between the number of MKR addresses active daily and the token’s price action.
„$MKR seems to be forming a significant bullish divergence in our Daily Active Addresses vs. Price Divergence model today,“ Santiment touted. „The MakerDAO network is indicating a high level of one-way transactions, which can generally lead to price increases with some sustained longevity“.
MakerDao brings Bitcoin to the Ethereum blockchain
Difference in price versus Daily Active Management for the altcoins: Santiment
„We are optimistic that $MKR is a solid asset to watch when the #altcoins start to activate,“ the firm added. „Watch closely to see if this divergence continues in the coming days and weeks.“
Maker suffers heavy losses from „Black Thursday“
Maker was hit hard during the „Black Thursday“ crypto market crash in March, when the loans that backed the creation of Maker’s stablecoin Dai (DAI) became insufficient collateral as markets fell: MKR fell by more than 60%, from $500 to $200 in about a day.
Hacking into a DeFi company shows what decentralised finance should and should not be
Maker recapitalised its loans through a debt auction in which lots of freshly minted MKR were minted in exchange for IAD. Despite the decline in MKR’s supply, the token rebounded in the lower-middle range of $300 during May.
Maker currently comprises the largest DeFi project by assets under management, representing 50.5% of the total decentralized financial sector.
The Maker Foundation faces a new demand for $28 million for the Black Thursday liquidations
The increase in activity around the Maker protocol may be due in part to the build-up by Ether (ETH) investors prior to the launch of ETH 2.0, as the rise of DeFi is leading many Bitcoin Billionaire Review, Corona Millionaire Review, Crypto Genius Review, Bitcoin Trader Review, Bitcoin Lifestyle Review to look for vehicles to generate passive returns.