As a seasoned crypto investor with a knack for spotting opportunities amid market turbulence, I find myself intrigued by the recent developments surrounding Maker and its ecosystem. The approval of LitePSM, aimed at improving the stability and efficiency of Dai, is a promising move that could potentially alleviate the gas fee issues that have plagued DeFi users in the past. This upgrade could indeed be a game-changer for Dai’s liquidity, volatility management, and systemic risk mitigation.
1. In an attempt to offset the negative mood in the cryptocurrency sector, diligent traders are working hard and managing to raise MKR’s price by 5%, which now stands at approximately $2,850.
After a robust rise to $70,000 on Monday, Bitcoin and many alternative coins experienced a downturn, resulting in their values becoming negative.
3% drop in the overall market value to $2.5 trillion emphasizes the increasing demand for sellers.
Maker Begins LitePSM Upgrade Rollout
1. The governing body of Maker has endorsed the rollout of an efficient upgrade called LitePSM for the PSM system. (Paraphrased)
1) PSM serves as a mechanism that keeps DAI’s value consistent with the U.S. dollar. It enables users to exchange DAI for other stablecoins, such as USDC, at a fixed rate of 1:1. This built-in trading system helps ensure the stability of DAI’s price by mitigating substantial fluctuations from its intended worth.
Maker Governance has approved the latest Executive Vote.
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On July 30th, at 20:29 UTC, the following modifications can be implemented in the Maker Protocol.
LITE-PSM-USDC-A Phase 1 Actions
The first phase of the migration from…
— Maker (@MakerDAO) July 29, 2024
As stated by Dewiz, a company specializing in DeFi Engineering Services, the Price Stability Mechanism (PSM) was developed during the “DeFi Summer” to manage the volatility of the $ Dai currency. However, critics have pointed out that PSM tends to monopolize the supply of Dai during periods of significant increases in gas prices, causing controversy.
1. Implementing LitePSM will allow Dai users to significantly reduce gas fees, enjoy a smoother exchange process for Dai swaps, and earn more returns. The primary goals of LitePSM are ensuring that the value of Dai remains close to the U.S. dollar by reducing volatility, providing ample liquidity, and managing the risks associated with the stablecoin system.
1. In the MakerDAO system, Dai functions as a stablecoin, maintaining its value by being tied to the U.S. dollar. This enables investors to engage with decentralized finance (DeFi) platforms for swap transactions and asset trading. With a market capitalization of approximately $5.3 billion, Dai ranks 19th among all cryptocurrencies in terms of size.
MKR Price Targets $3,000 Following Breakout
1. Last week, the MKR price peaked at $3,118 and then began following a descending pathway bounded by two diagonal trendlines, creating a “falling wedge” chart formation.
As each step was taken in descending order, the sound grew quieter, implying that sellers were losing control and enabling buyers to reverse the trend.
At a support level of $2,600, MKR was able to attract new buyers, preparing the way for a significant price turnaround. As traders observed MKR breaking above the upper trendline, they boosted their long positions, placing their stop losses just beneath it.
We expect MKR’s price to rise by 10% soon, pushing it close to the $3,000 mark. The appearance of a golden cross pattern, where the 20-day moving average surpasses the 50-day moving average, is an indicator of a persistent upward trend. Additionally, the MACD line providing a buy signal offers another reason for investors to consider purchasing MKR this week.
As a researcher studying the market behavior of MKR, I recognize that for a bullish outlook, we need the token’s price to surpass the opening price from yesterday ($2,825) to sustain momentum. Failing to do so might trigger concerns among traders, leading them to swiftly liquidate their positions and potentially instigate shorting the token.
If this happens, the correction could speed up and push the price back towards the starting point of $2,700. There’s also a chance for a more significant drop down to $2,600.
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2024-07-30 19:53