Explore the latest MKR Price Analysis. MakerDAO stands flat in the charts, and the MKR price is still under pressure. Could the protocol’s plans to replace DAI with PureDai and NewStable revamp price action?
When Bitcoin rises, altcoins tend to explode. After over three weeks, BTC prices broke above $66,000 on May 15.
As expected, altcoins rose in tandem, including MKR, the governance token of Maker, a DeFi lending protocol.
MKR Price Analysis: MakerDAO Down -33% From March 2024 Highs
The problem is that there was no follow-through, and MKR price is now down at spot rates.
To quantify MKR, CoinMarketCap data on May 17 shows that it was down roughly -3% in the last week and relatively flat on the previous trading day.
(MakerDAO)
The daily chart shows that prices are moving horizontally, and a bull flag has been printed following impressive gains in Q1 2024.
When writing, MKR is down 33% from March 2024 highs. Local resistance is at around the $3,200 and $3,300 zone. On the lower end, the primary support is $2,500.
(MKRUSDT)
Since MKR is up +60% from Q1 2024 lows, the path of least resistance is northwards. However, the race at which prices fly, breaking above the liquidation zone, will primarily be driven by news.
And this is where it gets exciting for MKR holders.
MakerDAO Announces PureDai Stablecoin For Decentralization Purists
Yesterday, MakerDAO, the decentralized autonomous organization (DAO) managing the platform’s algorithmic stablecoin, DAI, announced new plans.
Aware of the rising demand for a more decentralized and functional stablecoin, MakerDAO announced two stablecoin initiatives.
Rune Christensen, the founder of Maker, said the first will be the release of PureDai in the next few years. The revamped stablecoin and replacement of DAI will demonstrate Maker’s commitment to pushing the boundaries of decentralization.
PureDai: Returning to the ideological roots of Dai
This post is a follow-up to yesterday’s post outlining the two different directions of NewStable and PureDai that will come with Endgame (forum link: https://t.co/PS3LqtEb5H). To give the community a better understanding of the… pic.twitter.com/DAU1t1fa3k
— Rune (@RuneKek) May 16, 2024
Unlike DAI, which is backed by centralized and decentralized collateral like USDC, PureDai, the founder said, will be completely decentralized and function exclusively on the Ethereum mainnet.
Interestingly, PureDai will be free-floating. This feature means that, unlike DAI, the stablecoin might not be directly tied to the USD.
PureDai won’t depend on third-party collateral but will be backed by decentralized assets like ETH or staked ETH. Additionally, under Maker’s plans, PureDai will be fed only by decentralized oracles.
Moreover, the stablecoin will be immutable after launch to ensure PureDai’s independence from the MakerDAO. Once it hits the main net, no more changes will be required.
Looking at this, it is clear that MakerDAO is launching a toke that caters to decentralization purists.
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The Bottom Line: Rebranding DAI to NewStable?
Alongside PureDai, MakerDAO will launch yet another stablecoin, NewStable.
The idea behind NewStable is to prioritize growth, yield generation, and resilience. However, unlike PureDai, NewStable will be pegged to the USD while being compliant with regulatory requirements guiding the tokenization of real-world assets (RWA).
NewStable is meant for users who value stability and usability over absolute decentralization.
It remains to be seen whether PureDai and NewStable will be as successful as DAI.
Currently, DAI has a market cap of over $5.3 billion. It is one of the leading stablecoins trailing centralized options like USDT and USDC.
Even after much fanfare ahead of the GHO stablecoin
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
