Maker (Takes The Spotlight With 34% Gain

Maker is making waves as it enters Coingecko’s top gainers list this week with massive bullish pressure on the market. MKR is up nearly 34% in the bi-weekly timeframe, but long-term investors are enjoying bigger rewards as the token is up 205% year-to-date, and currently trading a little above $1,800.

The market started the year on a bullish note, with some altcoins leading the charge. The latest market data shows that the broader market is up nearly 6% in the past 24 hours.

The Spark

Spark, a DeFi infrastructure protocol on the MakerDAO, is breaking boundaries this year. According to their latest tweet, 2024 continues the bullishness it experienced last year.

In total, over $2.87 billion is supplied by the community as lenders. Total borrowing within the protocol now surpassed $1 billion, with available liquidity sitting safely at $1.81 billion

Happy New Year!

New year, same graphs going🆙

2024 looking promising ⚡️ pic.twitter.com/htlyiu7058

— Spark (@sparkdotfi) January 2, 2024

It is by far the biggest news for Spark this year. Last year, the protocol made progress in several other fields, like the deployment of the brand-new stablecoin, sDAI.

Market Enters Bullish Phase

As 2023 ended, the broader market has entered into a bullish frenzy. CCData’s 2023 Digital Asset Market Review reveals that the market entered 2024 with a big jump in important metrics, like assets under management (AUM) which increased by nearly 15%. The growth observed was last seen in 2022

MKR market cap currently at $1.701 billion. Chart: TradingView.com

Digital asset management companies also benefited heavily from this bullishness, with AUMs on companies like Grayscale, Bitwise, and Van Eck growing steadily as the year ended.

This brings the focus to Maker. With the current bullishness observed in this market environment, the opportunity for growth is significant as new and seasoned investors enter the market

However, this phase of the market also has its nuances

Maker: Overhyped And Overconfident?

Chart: TradingView

As of now, MKR’s market is completely overtaken by the bulls, as they attempt to push the price toward the $2k mark. This is great news for investors in all time frames. However, the current situation demands caution

The majority of the top coins and tokens are experiencing meager gains, only being propped up by minor cryptocurrencies that started the year on the green.

This can lead to pain in the short to medium term depending on the circumstance. However, if the bullishness continues, MKR hitting above $2k is not far-fetched

Still, investors should exercise caution on this price level as the market will eventually correct itself toward a more manageable price range

Featured image from Shutterstock

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