The MKR governance token of MakerDAO previously surged by more than 10% just a while ago, and the move defied slumping crypto prices. The platform managed to turn profitable again after making major tweaks in its lending rates.
According to several sources, the MKR token has established itself as the best-performing digital asset above the $100 million market cap. At the same time, the token has also managed to outperform the broader crypto market with a price increase as the rest of the market suffered a 3.66% decline.
There were not exactly any significant developments to initiate a rally and the only reason linked to the surge is the improvement in MakerDAO’s fundamentals. The platform managed to turn profitable after a brief increase in its spending on initiatives.
MakerDAO has managed to establish a name for itself as one of the largest crypto-lending protocols, as well as the issuer of the $5 billion stablecoin DAI. Just earlier this month, the platform temporarily hiked rewards for DAI holders to almost 8%, but the payouts obliterated Maker’s profit expectations. Maker, therefore, lowered the rewards and hiked borrowing rates, making it profitable again.
Maker (MKR) Price Analysis and Prediction
Maker (MKR) holders are currently benefiting from the platform’s profits via its buyback scheme which was introduced just last month. The scheme reduces the outstanding supply on the market using surplus revenues of the platform’s treasury.
At the time of writing, the MKR token has surged by a noticeable 12.19% in the previous 24 hours, pushing the trading price up to almost $1168.53. Furthermore, MKR’s market cap currently stands at the $1.1 billion mark.
Price predictions often turn out to be wrong as these are made via an algorithm. This suggests that these can change at any given time. However, some analysts predicted that MKR would fall back within the upcoming weeks despite its current surge. These analysts suggested that MKR would drop to the $1 mark by September and the $0.9 mark by the end of September.
However, several other analysts expressed increasingly positive predictions for the MKR token. They suggested that the token would cross the $2 mark by the end of this year and would continue to take off from there. But there are many other factors that can hinder or even fuel the growth of the token in this year’s last quarter.
