The Maker price has surged today as activity in its platform surges and as the rest of the cryptocurrency universe rebounded. The MKR is trading at $3,477, which is 90% above the lowest level last week. It has a market capitalization of more than $3.52 billion and is the 31st biggest digital currency in the world.
Maker is the biggest DeFi project
Decentralized Finance (DeFi) is a fast-growing industry that is changing how people access liquidity and make money online. The platform helps people to deposit funds and lend money online.
The Maker protocol does this by allowing people to generate Dai by leveraging collateral assets provided by Maker Governance. Dai, on the other hand, is a stablecoin that acts as a store of value, medium of exchange, unit of account, and a standard for deferred payments.
Over the years, Maker has become the most vibrant part of the DeFi industry with more than $8.56 billion of total value locked (TVL) according to data compiled by DeFi Pulse. Maker is developed using Ethereum’s blockchain.
Maker users follow four key steps. First, they create a collateralized vault, generate Dai from the vault, pay down the stability fee and exchange rate, and withdraw the collateral.
The Maker price crashed last week in part because of the overall weakness of the cryptocurrency market. This happened as the total value locked in the ecosystem declined from more than $15 billion to more than $7 billion.
Today, however, the price has bounced back because of the overall performance of other cryptocurrencies. Indeed, the total market cap of all cryptocurrencies has surged by more than 15% to more than $1.6 trillion. So, what next for Maker prices?
Maker price prediction
The daily chart above shows that the Maker price collapsed by more than 70% last week. The currency has already bounced back by 90% from its lowest level last week. The price formed a hammer candlestick that is usually a sign of a bullish reversal.
At the same time, it has already passed the 100-day moving average and is now attempting to cross the 50-day EMA. It has already passed the 50% Fibonacci retracement level and is now attempting to move above the 38.2% retracement level.
So, is this the start of a major comeback? In my view, this is hard to tell. However, a bullish trend will be confirmed if the price manages to move above the 38.2% retracement level at $3,960.