Awaiting the announcements made According to the Ethereum-based Decentralized Finance (DeFi) lending platform team, the price of Maker (MKR) has experienced a remarkable increase of more than 12% within hours. What do these developments entail and how will they affect the future of Maker?
Maker enables SubDAOs?
On August 28, the Maker team made a major announcement about their plans to introduce SubDAOs in South Korea. This move represents a critical evolution for MakerDAO and marks the “final push” to unlock the potential of decentralized autonomous organizations (DAOs).
According to the August 28 announcements, the introduction of SubDAOs is expected to streamline, innovate and strengthen the Maker ecosystem, paving the way for more opportunity and growth.
SubDAOs, which stands for Subsidiary Decentralized Autonomous Organizations, are expected to play a central role in the next phase of MakerDAO development. These entities will leverage the liquidity allocation from the Maker Protocol, exploring different return opportunities across the financial landscape.
From decentralized finance protocols to real-world asset solutions, SubDAOs strive to unlock the potential of diversified investment strategies.
According to the announcement, this presents a unique opportunity for Korean crypto leaders to engage at the forefront of DeFi developments. Participants will have the opportunity to be a part of forming their own SubDAO or contribute to existing ones.
This involvement provides insight into the success story of Spark Protocol, the first yield product incubated by a future SubDAO. The Spark Protocol has achieved significant achievements such as having high liquidity, industry leading borrowing costs and managing hundreds of millions of liquidity.
In addition, the event encourages forging connections between leaders in centralized finance (CeFi) and decentralized finance. These connections are expected to help bridge the South Korean community to the acquisition of SubDAO tokens and farming opportunities, fostering collaboration and growth within the ecosystem.
The move to SubDAOs signifies MakerDAO’s commitment to cultivating innovation across the industry. Participants can explore cutting-edge decentralized finance protocols and real-world asset solutions.
The MRK rally, how close to a new annual high?
The recent announcements have led to an increase in the price of MKR, following a decline that began on August 2, which coincided with reaching its yearly high of $1,371.
Subsequently, MKR experienced a decline, hitting a low of $984 and crossing the significant psychological level of $1,000 and the 50-day moving average (MA), which had previously provided substantial support for the token.
However, with the recent announcements and the excitement around the new phase of the protocol and increased liquidity entering the ecosystem, the MKR is up an impressive 12% in 24 hours.
Currently, MKR is trading at $1,170, surpassing and regaining its 50-day MA, which has played a critical role in driving Maker’s rallies throughout the year. Moreover, according to Token Terminal factsMakerDAO’s Total Value Locked has reached $5.16 billion, indicating an upward trend of 3.03% in recent days.
Given these developments, the question arises: is the MKR poised to reach a new annual high?
During MRK’s rally, the token reached as high as $1,230, but ran into a strong wall of resistance at that level. However, suppose the developments in the protocol continue to pick up liquidity, and the MKR bulls can defend the 50-day MA as support while further consolidating above the USD 1,260 level.
In that case, there is a possibility that MRK could reach a new annual high above $1,375 in the coming months and even reach the $1,400 level, a threshold not reached since May 2022.
Featured image from iStock, chart from TradingView.com