Maker [MKR] Attempts a Recovery from Lower Price Levels Targeting 68% Discount

Its been a rough month and year for Maker [MKR] holders and perhaps a good one for MKR short sellers. Its price has been heavily focused on a downward

After bottoming out at $1.006 on 25 October, Maker [MKR] has managed to achieve a 26% upside to reach $1.27. This recent bullish performance follows a massive pullback in the token since April, which amounts to a 68% discount from its previous price point.

However, despite being in the green for the last 6 days, MKR’s latest recovery is modest. Moreover, the token has been trading at a significant discount for months now. While the latest bullish efforts are promising, they may need to be sustained for MKR to achieve higher gains.

After rallying by over 50% in July, MKR attempted another bullish recovery from a lower price point this time around. This could mean that the token has the potential for higher gains. However, a major recovery also requires robust demand, which has been lacking for months.

MakerDAO joins list of top 10 dapps by weekly fees

Speaking of demand, MakerDAO was recently ranked 10th in the list of top dapps by weekly revenue and fees. It generated roughly $5.67 million in weekly fees, which indicated a decent level of utility. This, in turn, paints a rough picture of the level of demand for the platform.

✨ TOP DAPPS BY WEEKLY FEES GENERATED VS REVENUE GAINED@Tether_to $93.6M

@circle $28.9M

@jito_sol $28.7M

@RaydiumProtocol $22.3M

@LidoFinance $15.2M

@Uniswap $9.76M

@pancakeswap $8.92M

@pumpdotfun $6.94M

@Aave $6.70M

@MakerDAO $5.67M$USDT $JTO $RAY $LDO $UNI $CAKE $AAVE $MKR pic.twitter.com/24gcbvRdyx

— Chain Broker ?? (@chain_broker) October 30, 2024

A closer look at MakerDAO revenue and fees in the last 12 months revealed some interesting findings. The network generated $31,680 in fees and the same figure for revenues on 31 October 2023.

Fees on 30 October 2024 amounted to $847,750 while revenues came in at $517,600, confirming healthy year-over-year growth.

Source: DeFiLlama

The higher fees and revenue figures confirm that the decentralized finance (DeFi) platform is still able to capture growth from the resurging demand. Nevertheless, the competition has been intensifying, and this was evident by some of the higher ranking newer dapps on the list.

On-chain data also revealed that MKR volumes were significantly lower compared to 2021, especially in the few months near the market peak.

Source: DeFiLlama

The above observation may be a reflection of the current state of the market. Altcoins have relatively underperformed despite Bitcoin’s (BTC) latest momentum. These outcomes likely undermined potential demand for MKR.

A surge in demand for altcoins especially in the DeFi ecosystem may trigger more demand for MKR. However, we will have to wait and see if that will happen.

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