It is rare to see any cryptocurrency sustaining its gains amid the ongoing onslaught in the crypto market. A majority of coins in the market are trading in the red zone today, March 7, and have given up their past week’s gains. Bitcoin is a typical example of coins that have surrendered almost 100% of their past week’s and month’s price gains.
But Maker (MKR) emerged among the top weekly gaining coins, registering at least 20% last week. At press time, the token holds a 7-day price gain of 15.88% and a 16.9% 14-day price increase.
MKR Sustains Gains Amid Bearish Sentiments
On Monday, March 6, Maker saw a nearly 11% price increase, gaining over $92 and closing the day at $949.95. The price rally could be due to the ongoing ‘buy DAI, win DAI’ reward pool.
Despite trading with a 4.3% price decline in the last 24 hours, the Maker token sustained most of its past week’s gains. The coin recorded a 28.3% gain over the past 30 days. With its 14% weekly gain, MKR is outperforming the global crypto market, which has reduced by 3.10% over the past seven days.
MKR’s price is currently hovering at $901.35 in the daily chart. | Source: MKRUSD price chart from TradingView.com
Reduced Borrowing Fees And Other Activities Support Maker Price
Considering the increased asset volatility in the crypto market lately, Maker’s performance is impressive and against the odds. There must have been improvements supporting it to beat the market-wide bearish trend.
MKR is a governance token for paying borrowing fees when users take loans by locking-in collateral in exchange for DAI (Maker’s stablecoin). The chief factor influencing the MKR token’s price action is the reduced borrowing fee by Maker DAO.
Maker DAO reduced its annual borrowing fee for Rocket Pool ETH to 0.5% while increasing the maximum debt ceiling from 20 million DAI to 30 million DAI. This action would allow users to borrow more.
Aside from the annual fee for Rocket Pool Ether borrowing collateral, it also reduced the borrowing fees on several other loan offerings. These offerings caused an uptick in Maker token’s trading volume while pushing its price as more users joined the network.
There have been several other developments on Maker DAO, which might be responsible for MKR’s tenacity amid the recent downtrend in the market. Maker DAO’s real-world assets have been gaining more popularity.
On February 24, the protocol published a report showing that its real-world assets (RWA) recorded increased transactions, yielding a DAI loan balance of over $600 million.
According to the announcement, Maker DAO generated $2.5 million in fees from RWA deployments. This achievement suggests that Maker is gaining more users, which could be rubbing off on the MKR token.
Most recently, Argent HQ, a DeFi protocol, partnered with Ramp Network to initiate a reward pool. The reward pool allows users to win DAI when they buy DAI via in-app purchases on zkSync Lite. These and other recent developments could be among the factors pushing MKR’s price.