Maker (MKR) crypto prices surged on Thursday after investors reacted positively to the increasing demand for the Dai stablecoin. The coin’s price jumped to a high of $1,100, which was much higher than the low of $978 last Friday. The surge of MKR happened alongside the recovery of tech stocks following Nvidia’s earnings.
The MakerDAO project is one of the most influential in the blockchain space. According to DeFi Llama, its total value locked (TVL) stands at over $5.12 billion, making it the third-largest DeFi player, after Lido DAO and AAVE.
The project is known for the Dai stablecoin, the world’s 12th-largest cryptocurrency and its third-largest stablecoin. The market cap of Dai has increased by more than $1 billion in the past few weeks, providing support to the MKR token.
The success of Dai is mainly due to the Spark Protocol, a DeFi project launched by MakerDAO a few months ago. This protocol makes it possible for people to earn returns by depositing cryptocurrencies like ETH and Dai. Spark users can also borrow Dai against their collateral and swap other coins without experiencing any slippage. Currently, depositors earn returns of up to 8%.
The high interest rates of money market funds are now a challenge for MakerDAO and other DeFi protocols. The Federal Reserve’s relatively higher interest rates have made it possible for some funds to return up to 6%.
The 4H chart shows that MKR’s price dropped sharply last week as the crypto market plunged. It fell to the important support level at $978. The coin currently remains below the 50-day moving average and is slightly below the 50% Fibonacci Retracement level. Therefore, there is a possibility that the MKR price may continue to rise as buyers target the key resistance level at $1,150. A drop below the support at $1,050 would invalidate the bullish forecast.
If you wish to buy MKR, you can do so through eToro, a platform that offers a wide range of cryptos, such as Bitcoin, XRP, and others, alongside crypto/fiat and crypto/crypto pairs. Also, OKX is another world-leading cryptocurrency exchange that provides advanced financial services to traders around the world.