Decentralized Finance (DeFi) has rapidly grown this year. Maker DAO is among the leading DeFi platforms, and its native token, MKR, has been making significant gains attributed to the ongoing crypto bulls.
MKR is trading at $3201.28 at the time of writing after a 10% gain in 24 hours
MKR Price Analysis
MKR is currently on a steady upswing, and we could see it breaking past critical resistance levels. The next upper level for the token is $3400 and $3800. If these levels are to be achieved, market supports needs to play a central role. BTC has managed to hold $40K after facing rejection several times, and if it moves past this resistance, altcoins, including MKR, could make significant gains.
On the other hand, this week’s bullish flag has been disrupted severally, meaning that the current upswing could also fail to hold. In this case, we could see MKR retreating to retest lower resistance at $2800. If the entire market registers a bearish flag, MKR could renter the late July lows of $2200.
MakerDAO has announced that it is shifting to full decentralization, and the Maker Foundation will be closed in the coming months. Even though no timeline has been given, Maker Foundation announced that all its operations would be turned over to its decentralized autonomous organization (DAO), as previously stated by MakerDAO’s founder, Rune Christensen.
A recent report by ConsenSys indicated that trading volumes in decentralized exchanges in Q2 were higher than Coinbase trading volumes. The report also indicated that Q2 recorded more than 7.3 million MetaMask users, showing that the DeFi buzz is picking up. While this growth is a positive sign for DeFi developers, it has caught the interest of Gary Gensler, the chair of the Securities and Exchange Commission (SEC).
In a crypto speech this week, Gensler pointed to the need for regulations on DeFi. In his speech, Gensler stated that crypto lending activities needed to be regulated and that liquidity pools needed to be treated similarly to mutual funds. However, Gensler failed to give a timeline as to when these regulations will come into effect.
Where to Buy MKR
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