MKR Outperforms Top Coins With 9% Increase, Can It Test $1100?

The past few days have favored altcoins with incredible gains. Among the soaring coins is MakerDAO’s governance token Maker (MKR). MKR witnessed impressive price performance in the last seven days, outpacing top cryptocurrencies with over a 48% price increase on the weekly top gainers’ chart.

CoinMarketCap data shows that Maker (MKR) price recorded a significant gain of 46.78% among top gainers over the past 30 days. As of the time of writing, the token has recorded a 24-hour price increase of 12.96%. 

Maker’s Price Movement in The Past Week

Maker’s bullish price action attracted the attention of market participants after climbing to over $1,000 from a price of $677 recorded on June 28. Although it recorded pullbacks here and there, MKR price still saw massive rallies within the past seven days.

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The token price experienced a slight dip after trading at $704 on June 25. However, it recovered momentum and rose from $677.88 on June 28 to $834 on June 30, a 21% increase from the June 28 opening price. Maker rode a consistent bullish wave to its current price of $1,032, with a 49% gain over the past seven days. 

Since the start of June, MKR has recorded two major price rallies. From July 1, MKR’s price surged 21%, rising above $830 from $687 on June 30. MKR token’s valuation increased by 8% in the early hours of July 3, bringing the price to $929.87, a 3-month high since March. 

The token’s trading volume has also spiked, suggesting increased market activity and buying pressure. At press time, Maker’s trading volume is at $117 million, with a 71.53% increase in the last day. Maker saw a sharp spike in trading volume from June 28. The trading volume went from $25 million to $126 million on June 30 before dipping below $70 million.

However, data shows the bulls are back as the uptick in trading volume resumed on July 3 and now stands at $125 million.

Moreover, the overall protocol performance has improved. MakerDAO is in second place in DefiLlama’s protocol rankings. It is trailing behind Lido with a TVL of $6.205 billion. The protocol recorded a 24-hour decline of 0.92% and a 1-month increase of 0.97%.

Factors Influencing Maker (MKR)’s Price Performance

The specific factor driving MKR’s price action remains unclear. But the overall positive sentiment in the broader crypto market appears to have robbed off on the token. 

Spark Protocol, a Maker-powered lending platform launched on May 8, 2023, and appears to have received increased user interest. Spark Protocol developers, Phoenix Labs, launched a multi-chain proposal for Spark Protocol to allow cross-chain deposits and withdrawals for DAI borrowers.

Currently, DAI borrowing on Spark Protocol has surpassed the previous debt ceiling of 5 million DAI to 8.16 million. This suggests increased lending activity in the protocol, increasing MKR transactions since it is the utility token for Spark Lending.

Featured image from Pixabay and chart from TradingView.com