Maker (MKR) Ignores Market Downtrends, Gains Over 15% In One Week
Maker Foundation’s governance token, MKR, seems to be ignoring the evaporative bearish trend that hit almost all coins across the crypto market. Its gains over the past month and weeks show the asset means to beat all odds.
As of today, March 2, Maker has gained up to 15% in the last seven days, according to the coin tracker, CoinGecko. While the downtrend affected the weekly and monthly gains of the chief cryptocurrencies, Bitcoin and Ethereum, MKR recorded over 40% in 30-day gain and nearly 18% gain in 14-day price growth.
With the current 15% weekly gain, MRK is outperforming the global cryptocurrency market, which has declined by 2.3% over the past week. It is also outperforming similar Ethereum ecosystem cryptocurrencies, which have collectively seen a 2.1% price decline.
Maker (MRK) Booms In Trading Volume As MakerDAO Deployed Lower Fees
Maker DAO, the protocol behind MKR, deployed lower borrowing fees on March 1, spiking MKR trading volume by over 200%. According to the report, MakerDAO reduced its charges for borrowing DAI (Maker’s stablecoin) against Rocket Pool Ethereum (rETH) through the RETH-A vault type. It would allow rocket pool Ether (rETH) holders to borrow at an annual fee of 0.5%, possibly the lowest fee with rETH collateral in the decentralized finance (DeFi) space.
Maker DAO also reduced the annual borrowing fee for its WBTC-A wrapped Bitcoin (WBTC) collateral from 2% to 1.75%. It went on to reduce the “annual fee” for its WBTC-B borrowing type from 3.5% to 3.25%. The MATIC-A with MATIC collateral debt ceiling increased from 10 million DAI to 15 million DAI, along with other parameter changes to improve the user borrowing experience.
These changes are spiking more interest in Maker’s borrowing offerings, which has rubbed off on its governance token, MKR. As indicated on crypto price tracker CoinMarketCap, MKR token trading volume shows a $164.32% 24-hour increase against its past-day value. This spike in trading volume suggests increased on-chain activity as more people take advantage of the lower trading fees in their borrowing transactions.
Following this, the trading volume was $43.79 million in the early hours of March 1, 2023, but later jumped to $70.52 million. At the time of writing, MKR’s trading volume is $168.27 million. That represents an over 200% increase in trading volume within 24 hours.
Maker (MKR) Holds Gains
At press time, MKR is trading at $899.46, a price 432.39% higher than its all-time low of $168.38, recorded on March 16, 2021. Within the past week, the broader cryptocurrency market succumbed to a bearish price trend due to increased volatility. Several coins lost their past-month gains, while some only held on to a slim price gain.
But Maker (MKR) sustained its gains, emerging among top gainers with a 41.4% 30-day price increase. Also, most assets across the cryptocurrency market are trading in the red zone while MKR is green. Since opening the day, it has already scored some gains and has recorded a 4.4% 24-hour price increase at press time.
According to Coingecko, the community is bullish about MKR, with over 75% feeling good about the token. MKR might surpass its current price and pursue the $1,000 mark should it sustain this bullish rally.