In this article, I will take a deep dive into the historical data of MakerDao to help investors understand how it performs. This can also provide some guidance to what we might want to do with our investments and whether or not we should continue holding on for another year.
2021 has been an extremely volatile year for cryptocurrencies as well as tokens within different platforms – but one that seems promising at times too!
Many investors are focusing on crypto-assets like coins and tokens, but we should also keep an eye on DAOs. MakerDAO, the project behind MKR tokens and DAI, has seen some promising activity recently.
Optimistic Trading Forecast For MAKER in 2022 & Beyond
As of press time, MKR was trading at $1,797.27, down by 1.27% over the last 24 hours.
The metrics, however, show something interesting: weighted sentiment rose to a euphoric high of 7.372, despite the price still falling.
Despite this being a positive trend, it’s important to keep in mind that sharp downtrends can sometimes follow such enormous highs.
Looking at the network itself, when we compare active addresses and development activity together, we notice an interesting pattern. In the period between September 2021 and March 2022, sharp drops in development activity were accompanied by sharp peaks in active addresses. Now, with development activity on the uptrend again, active addresses are not just rising but also stabilizing.
MKR Analysis and Price Prediction
The price of MKR at press time is a long way off from the $6,000 high around the time of the May 2021 crash. Indeed, the price of MKR has been falling since late 2021. Santiment insights noted,
“Back in OCT 2021, market participants saw that price probably bottomed and begun taking on debt and with rising prices, they grew even more confident, creating more debt and pushing prices even further. Until debt creation plateaued. No new money is coming in to prop up the price…and down we went.”
Similarly, the price of Ether has been declining, and this has affected MKR investors as well as many others who own altcoins. Santiment Insights explained that the highest debt cluster spike was actually seen at the top on Nov 9th 2021 and since then there has not been any other debt spike seen. Retailers and big boys are not taking on any additional debt at all.
It remains to be seen whether more debt clusters will form with the top cryptos again in the red at press time.
Crypto Tokens Donations to Ukraine
Based on an analysis by AML analytics platform Coinfirm, USDT was the top choice of crypto tokens donated to Ukraine’s resistance against Russian aggression as of 4 March.
However, the second most popular token was DAI.
Via this site.