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Increased user activity indicates bullish divergence for makers

May 20, 2020

Santiment, the crypto market data analysis company, has released data based on a bullish activity around MKR, the token that supports the decentralized financing project MakerDAO (DeFi).

Santiment published on May 20 Data which ads a Bullish divergence between the number of MKR addresses active daily and the token price action.

“$ MKR seems a big bullish divergence in our model today” Daily Active Directions vs. Price Divergence “form,” Santiment tweeted. “”The MakerDAO network reports a high level of transactions with unique addresses, which can generally lead to a price increase with a longer lifespan. “

Increased user activity indicates bullish divergence for makers
Increased user activity indicates bullish divergence for makers

Price divergence compared to daily active address for altcoins: Santiment

“We are optimistic that $ MKR is a solid asset when #altcoins start playing“The company added.” Take a close look to see if this divergence persists in the coming days and weeks. “

Maker suffers heavy losses for “Black Thursday”

Maker was badly hit during the Black Thursday crypto market crash in March when the loans that supported the creation of Manufacturer Stablecoin Dai (DAI) They became an inadequate guarantee when the markets fell: MKR fell more than 60%, from $ 500 to $ 200 in about a day.

1-day MKR / USD pair chart at Bitfinex: TradingView

Maker recapitalized its loans through a debt auction in which newly issued lots of MKR were minted in exchange for DAI. Despite the decline in MKR supply, the token recovered in the low to medium range of USD 300 in May.

Maker currently includes DeFi’s largest managed asset projectThis corresponds to 50.5% of the entire decentralized financial sector.

The increase in activities related to the Maker protocol can partly be attributed to the build-up of ether (ETH) investors before the release of ETH 2.0, as the DeFi boom caused many ETH investors to look for passive returns on vehicles to generate.

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