MKR surges 15%, hits $1,500 – will the run continue?

MKR surges 15%, hits $1,500 - will the run continue?

The Maker Token (MKR) Surges 15%, Outperforming Top Coins

The Maker token (MKR) has recently achieved a significant milestone by breaking the $1,500 level with a sharp 15% rally. This surge in price comes as on-chain data reveals a surge in address activity, indicating strong demand for the token.

While major cryptocurrencies like Bitcoin have faced recent struggles, MKR has been able to differentiate itself by demonstrating a bullish momentum. The recent rally has propelled the token past the $1,500 level, a level it hasn’t reached since May 2022.

MKR’s Impressive Performance against Top Coins

Among the top 100 cryptocurrencies by market capitalization, only two tokens – Chainlink (LINK) and Curve (CRV) – have outperformed Maker with better returns during the past week. However, even these assets haven’t experienced the same consistent bullish momentum as MKR over the past month. MKR’s remarkable 42% profits during this period have significantly surpassed the gains of both LINK and CRV.

To illustrate the recent rally, let’s take a look at the following chart:

MKRUSD Chart

(Source: TradingView)

As depicted in the chart, MKR has witnessed a sharp increase in value in recent days.

Surge in Maker’s Active Addresses

Data from the on-chain analytics firm Santiment highlights a surge in Maker’s “active addresses” metric, coinciding with the token’s price rally. The active addresses metric represents the daily total number of unique Maker addresses involved in transaction activity on the blockchain. Essentially, it measures the network’s daily transactional traffic.

A higher value for this metric reflects increased participation and trading activity within the MKR ecosystem. Therefore, the current trend suggests a high level of interest in the token.

Let’s examine a chart showcasing the changes in the active addresses metric for MKR over the past month:

MKR Active Addresses Chart

(Source: Santiment)

The chart clearly indicates a correlation between the surge in active addresses and the rally in MKR’s price. Following the latest increase, the indicator has reached a value of 651, the highest observed in around 10 weeks.

Sustainable rallies require continued participation from a significant number of traders. When a rally lacks a sufficient rise in user activity, it tends to lose momentum. However, with a growing number of addresses becoming active alongside the Maker surge, signs look promising for its sustainability.

While the price continues its upward trajectory, some investors may be tempted to take profits. This notion is supported by Santiment’s inclusion of exchange netflow data in the chart, which reveals recent inflows of $7.6 million into centralized exchange platforms. Such inflows may indicate profit-taking activities, potentially leading to a temporary top in price.

Overall, the Maker token’s recent performance and increasing address activity highlight its attractiveness to traders and investors. With its unique features and the growing adoption of blockchain technology, the future prospects of the Maker ecosystem remain intriguing.