MKR Price Soars as Spark Protocol Inflows Surge

• Maker (MKR) price spiked on Thursday as investors reacted positively to the rising demand for Dai stablecoins.
• Spark Protocol, a rival to AAVE, is seeing strong inflows due to its higher interest rates.
• The MKR price is currently trading slightly below the 50% Fibonacci Retracement level and could continue rising if buyers target the resistance level at $1,150.

Maker (MKR) Price Regains Momentum

The Maker (MKR) crypto price jumped on Thursday as investors cheered the increasing demand for the Dai stablecoin. The coin rose to a high of $1,100 which was much higher than last Friday’s low of $978. Its recovery also coincided with the strong rebound of tech stocks following Nvidia’s earnings report.

Increasing Demand for Dai Stablecoin

Data compiled by Defi Llama lists MakerDAO’s total value locked (TVL) at over $5.12 billion, making it the third DeFi player after Lido DAO and AAVE. Dai’s market cap has surged by more than $1 billion in recent weeks, giving support to MKR’s token. This is attributed to Spark Protocol – a DeFi protocol that makes it possible for people to earn returns simply by depositing cryptocurrencies like ETH and Dai into it without slippage or lending risk. Depositors are earning returns of up to 8%. Spark Protocol’s TVL has skyrocketed to over $578 million .

High Interest Rates Affecting DeFi Platforms

MakerDAO and other DeFi protocols are facing challenges from money market funds that now generate higher interests rate courtesy of the Federal Reserve with some funds returning up to 6%. This is posing competition for these platforms which offer lower rates compared with money markets funds due their exposure risks associated with loans made in them.

MKR Price Forecast

The 4H chart shows that MKR dropped sharply last week as cryptos prices plummeted hitting an important support level at $978 before recovering slightly below the 50% Fibonacci Retracement level but still remaining below its 50-day moving average. There is therefore a possibility that MKR will continue climbing if buyers target the key resistance level at $1,150.


Overall, MKR’s price has been on an upward trend this week thanks to increased demand for Dai stablecoin which is being driven by Spark Protocol’s attractive returns rates compared with traditional money market funds providing competition against other DeFi platforms such as AAVE and Lido DAO while offering depositors better yields without risking their assets through loans