- MakerDAO’s annual fee income has declined since the SVIB collapse.
- MKR prices are at risk of falling further as buying pressure eases.
Annual fee income from major decentralized finance protocols MakerDAO (MKR) The decline has come since the collapse of Silicon Valley Bank (SVIB) on March 10, data from maker burn revealed.
Maker fee income is down 11% over the past week, to 43.23 million DAI tokens at press time.
The exact amount of fee income generated by MakerDAO varies depending on several factors, including demand for DAI, the amount of collateral locked up in the Maker Protocol, and the stability fee and liquidation penalty rates set by MKR holders.
A sharp drop in fee income on the protocol last week was responsible for the loss of stablecoin DAI’s $1 peg after the USDC issuer confirmed that deposits were being held at SVB.
Since USDC was a major collateral for DAI, its unpegging event resulted in a temporary loss of dollar peg for DAI.
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It also resulted in a significant drop in the value of MKR, forcing the protocol to implement several emergency resolutions to prevent another Black Swan event. All of this led to a decline in protocol fee revenue last week.
MKR price goes up and down
Following advertisements The MKR price rose by double digits on March 12 after federal regulators liquidated SVB depositors. According coin market capThe DeFi token changed hands to hit a high of $956 in the early trading hours of March 13.
However, as the week progressed, the buying momentum gradually subsided, which started the fall in the price of MKR. At press time, the coin was trading at $739.95, having lost 23% in value since Monday.
With buying pressure easing, MKR has traded in a tight range over the past two days. An analysis of its price on the daily chart shows that it has been trading within the price range of $745 and $740 since March 16.
Reading Manufacturer Price Prediction (MKR) 2023-24
At press time, the leading momentum indicators were resting below their respective neutral lines. For example, both MKR’s Relative Strength Index (RSI) and its Money Flow Index (MFI) stood at 44.88 and 45.80, respectively.
With the market volatility in recent days, MKR traders were suspicious of sudden price movements and refused to accelerate accumulation as a result.
Although the dynamic line (green) of MKR’s Chaikin Money Flow (CMF) was still in positive territory at press time, already in a downtrend position, a further decline in positive sentiment would push the CMF below the line. central. If this happens, it will mark the liquidity outflow needed to start any rally in the MKR price.
Source: MKR/USDT on TradingView
