• Maker (MKR) crypto price jumped on Thursday following strong inflows into the Spark Protocol.
• Dai’s market cap has jumped by more than $1 billion in the past few weeks, giving support to MKR’s token.
• The MKR price is likely to continue rising as buyers target the key resistance level at $1,150.
Maker (MKR) Price Regains Momentum
MKR’s price has had a strong recovery in the last couple of days due to increasing demand for Dai stablecoin. On Thursday, it reached a high of $1,100 compared to Friday’s low of $978. This coincides with tech stocks making a comeback following Nvidia’s earnings report.
Spark Protocol Inflows Rise
MakerDAO runs on the blockchain and its Total Value Locked (TVL) stands at over $5.12 billion which puts it third after Lido DAO and AAVE among DeFi players. It is renowned for its Dai stablecoin which happens to be 12th largest cryptocurrency and 3rd biggest stablecoin globally. The recent surge in Dai’s market capitalization exceeds over $1 billion providing underlying support for MKR tokens’ prices . Spark protocol is another DeFi service launched by MakerDAO a few months ago that allows people to earn returns simply by depositing cryptocurrencies such as ETH and Dai. Depositors are currently earning returns of up 8%. Besides, users can also borrow Dai against their collateral or even swap other coins without incurring slippage costs -all thanks to Spark protocol who have an increasing TVL worth above $578 million now .
High Interest Rates Challenge DeFi Platforms
However, high-interest rates from money markets pose some challenge for MakerDAO and other DeFi platforms because they offer relatively higher interest rates than the Federal Reserve while some funds are returning as much as 6% .
Price Forecast Analysis
The 4H chart shows that MKR dropped sharply last week when cryptos experienced bearish sentiments resulting in it hitting an important support level at $978; still below 50-day moving average and slightly lower than 50% Fibonacci Retracement level. Thus, bullish traders are likely to target the resistance level located at $1,150 driving prices upwards further..
In conclusion, MKR prices have been gaining momentum recently due to rising demand for its underlying asset -Dai stablecoin whose market cap has increased substantially by more than one billion dollars since launch- supported by Spark Protocol which offers generous returns between 6% and 8% through deposits or borrowing services with no slippage costs incurred . Technical analysis suggests that bullish investors will most likely target the resistance point at 1,150 dollars pushing prices upwards further