• MakerDAO’s [MKR] price hike in February only had a minimal impact on its long-term holders, who have remained in losses since they acquired the token.
• Despite this, Maker has managed to remain the largest decentralized stablecoin with DAI and avoid regulatory scrutiny.
• It is unclear what is in store for MKR holders, but Maker continues to reach new milestones as its debt ceiling increases and more stETH is supplied.
MakerDAO’s Recent Price Surge
MakerDAO [MKR] may have had one of its best-performing months in February, but that 40% 30-day surge only had a minimal impact on the token’s long-term holders. During the previous month, most cryptocurrencies only traded sideways. But MKR’s standout growth was one not to disregard.
Long-Term Holders‘ Losses
Is faith in MKR the evidence of things not seen? Despite the hike, many addresses that held MKR for the past 365 days could only rise to gain regions for the first time since they accumulated. The price increase brought MKR’s 2023 performance to a 75% hike, implying that a lot of holders bought the top. It was a more discouraging phase for believers in the Maker project who have owned the token for far greater years. According to Santiment’s insight, this group has continued to bear losses.
Maker Remains Undeterred
Despite these losses and being 85.97% down from its All-Time High (ATH), Maker still had the biggest decentralized stablecoin in DAI and has been able to steer clear of regulatory scrutiny from centralized entities. Recently, Maker disclosed that DAI on Curve Finance [CRV] liquidity pool hit a new ATH with 82.4 million DAI and 190 million DAI from wstETH (WSTETH-A). This milestone also contributed to an increase in supply of staked Ether [stETH].
What Lies Ahead?
It is uncertain what lies ahead for MKR holders, but Maker continues reaching new milestones as its debt ceiling increases and more stETH is supplied through validator withdrawal season nearing closer by day. However, it remains unclear if this will help long-term holders get back into profit or if they will be stuck bearing further losses due to market conditions beyond their control.
Hoping for some positive outcome? Check out Maker Profit Calculator which can be used by investors to calculate whether their portfolio holdings are currently green or red according to current market conditions!