- MKR wins as one of the DeFi tokens that managed to retain most of its value.
- MKR maintains a healthy premium despite the recent headwinds in the market.
The recent selling pressure in the crypto market this month weighed especially heavily on Altcoins. Despite this, some DeFi tokens like Maker [MKR] had a softer fall than most of their counterparts.
Read more about MKR’s price forecast for 2023/2024
MKR stands out from most altcoins according to IntoTheBlock’s recent profit and loss analysis. The report suggests that 90% of crypto holders are currently losing money. It also noted that fewer MKR holders are now losing money compared to a year ago.
While many altcoins are experiencing unprecedented losses, with over 90% of holders experiencing losses, the major DeFi tokens are showing some resilience.
An examination of holders’ profit and loss profiles over the past year shows that most are in a similar position… pic.twitter.com/miXAX5YdLX
— IntoTheBlock (@intotheblock) August 24, 2023
According to the analysis, MKR had the lowest percentage of loss holders at 52.36% of the top DeFi tokens. Compound had the highest loss profile at 92.92%. According to the analysis, one of the main reasons for MKR’s win is the token’s overall bullish performance so far this year.
A look at MKR’s year-over-year price action confirms this. For example, the $1071 price tag represents a 117% premium over its 2023 low. Despite this, MKR recently retreated about 20% from its peak of $1369 in early August.
These findings confirm that the token has indeed performed quite well, especially for those who bought it at the beginning of the year.
Source: TradingView
Review of MakerDAO Profitability
Despite the above findings, the profitability level over the past 30 days reflects bearish market conditions over the same period. MKR’s MVRV ratio recently fell to its lowest level in four weeks during the trading session on August 23. This confirms a drop in profitability to its lowest level so far this month.
Source: Sentiment
Whales often have the biggest impact on prices. The MKR supply of top addresses has also been on a downward trajectory. This is confirmation that whale balances have lightened as a result of the outflow, which has consequently contributed to the selling pressure.
Is your wallet green? Check out the MKR Profit Calculator
The average coin age of MKR maintained an overall upward trajectory despite whale outflows and bearish price action. Why is this happening? Well, the average coin age is used to highlight the unspent transaction outputs over time. In other words, it shows that coins that have been stored for a long time still retain that state, hence a focus on long-term hodling.
Source: Sentiment
The fact that long-term hodlers are choosing to hold their coins is a good sign for the bulls and MKR’s long-term potential. However, a drop in the average coin age could indicate the capitulation of long-term hodlers.