Crypto News

MakerDAO, $MKR Faces Price Decline Following On-Chain Activity And Protocol Changes

MakerDAO ($MKR), known for its significant contribution to real-world asset (RWA) transactions within decentralized finance (DeFi), has experienced a slight price decline in recent hours, influenced by on-chain activity and protocol adjustments.

According to reports from on-chain analytics firm Spotonchain, Wallet 0xa58, associated with RuneKek, a MakerDAO co-founder, has sold 2,235 $MKR for 4.542M $DAI at an average price of $2,032 over the past two days. 

The wallet still retains 2,430 $MKR ($4.92M) and may continue selling. This activity has contributed to a 3.39% decrease in $MKR price over the past two days and a 2% decline in the last 24 hours.

Another MakerDAO Factor Affecting Price Action For $MKR

Another factor impacting the decline is the recent announcement of modifications to the Maker Protocol, particularly an increase in stability fees across various collateral types:

– ETH-A Stability Fee: Increased from 5.25% to 6.74%.

– ETH-B Stability Fee: Increased from 5.75% to 7.24%.

– ETH-C Stability Fee: Increased from 5.00% to 6.49%.

– WSTETH-A Stability Fee: Increased from 5.25% to 7.16%.

– WSTETH-B Stability Fee: Increased from 5.00% to 6.91%.

– WBTC-A Stability Fee: Increased from 5.79% to 6.70%.

– WBTC-B Stability Fee: Increased from 6.29% to 7.20%.

– WBTC-C Stability Fee: Increased from 5.54% to 6.45%.

These adjustments are likely contributing to market sentiment surrounding $MKR. 

Investors are closely monitoring MakerDAO’s response to these changes and how they may impact the protocol’s stability and user engagement moving forward. 

As the DeFi space continues to evolve, adaptability to market dynamics remains crucial for projects like MakerDAO to maintain their position within the ecosystem.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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