MakerDAO: Will Coinbase's announcement change everything for MKR?
Following a tornado of cash sanctions, Coinbase proposed MakerDAO as the first client of its USDC institutional rewards program.
Making MakerDAO a core customer may benefit Coinbase's image, but will this development benefit MKR?
The deal involves 33% of USDC being moved from Maker's Price Stability Module (PSM) to Coinbase's Prime, with an estimated value of $1.60 billion, for a yield of 1.5%.
This move could benefit Coinbase after the Tornado Cash crash as it could enhance Coinbase's reputation. However, the folks at MakerDAO need to weigh the pros and cons of the deal before committing to the proposal.
One reason for Coinbase's interest could be the continued development of MakerDAO. MKR has seen tremendous growth in social engagement over the past three months.
MakerDAO's social engagement has increased by 44.22%, and its social mentions have increased by 9.68%.
The growing presence on social networks may attract interest not only from exchanges but also from other MKR investors.
Another update that may be of interest to investors might be the recent tweet from WhaleStats. Some of the top 2000 ETH whales are already holding MKR tokens as the token has made it to the list of assets held by Ethereum whales at the present time.
The number of addresses with more than $1 million also increased, up 3.51% over the past seven days. Increased interest in whales can be viewed positively by investors and traders.
However, there have also been worrying signs. Total volume has declined since last month and has depreciated at an alarming 88.16%% over the past 30 days.
MKR's market capitalization has also fallen, with its dominance dropping 22.29% in the previous 30 days.
At press time, the token is trading at $731.99 with a decrease in value of 2.45% over the past 24 hours.
Also, the RSI and CMF readings seem to be skewed to the sell side.
It looks like there could be a lot of volatility for the MKR token in the near future and therefore readers should do their research before placing any trades.
Sep 15, 2022