Market

Maker (MKR) had a bad week, but that’s not all

As the second largest DeFi protocol in the crypto market, Maker (MKR) has a lot of eyes on it. The protocol has performed well over the past few months, but this week has disappointed investors the most.

The big question now is, can MKR recover?

MKR has a huge impact

Among the top performing DeFi tokens, Maker lost the most this week. In just one week, the DeFi protocol lost a total of $ 2.1 billion in total on-chain locked value (TVL).

However, this loss of TVL was caused by the investors themselves when the growing numbers suddenly declined. After increasing to 500, the number of active addresses quickly fell by more than 40% within a week.

Maker active addresses | Source: Glassnode

This also contributed to the fact that the velocity fell to its lowest level in November, although this is not the first time that investors have seen impulsive behavior in the past few days.

Due to MKR’s high volatility in November, there were times when the price rose 14% and fell 10%. Similarly, the MKR was down 14.15% the previous week, causing investors to suddenly move tokens.

MKR price campaign | Source: TradingView

It is also the reason why this month saw the highest increase in trading volume since the ups and downs of April-May compared to other months.

However, it’s not just traders who buy and sell, but whales as well, with nearly $ 100 million to $ 300 million worth of trades, popping up online.

This is not surprising as more than 50% of the MKR supply is in the hands of whales. In fact, the top 1% of addresses hold 95% of the offer.

MKR offer in the top 1% of addresses | Source: Glassnode

Even so, investors have certainly been profitable from the beginning of the year until today. Compared to 20% last December, 81% of all owners are now profitable. Fortunately, only 1% of the owners lose.

Number of profitable MKR addresses (green) | Source: Intotheblock

In summary, this altcoin had a bad week on both the DeFi and Spot fronts. At the macro level, however, there is hope of recovery and a bullish outlook for MKR as long as the market does not see abrupt whale sell-offs.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Minh Anh

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

11 minutes ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

2 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

3 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

3 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

3 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

5 hours ago

This website uses cookies.