Maker’s transfer volume over the last 24 hours hit an ATH of $11 million, surpassing the former ATH set on 13 August 2020 of $10.9 million, according to metrics site Glassnode.
The transfer volume describes the total value of coins transferred on-chain.
Glassnode distinguishes between transfer volume, which involves the transfer of wealth between network participants, and overall trading volume on exchanges, some of which occurs off-chain and also comprises reshuffling between internal wallets. Daily trading volume for Maker today sits at close to $1 billion.
Maker’s price also rose by over 50% in the last 24 hours. Taken together, the metrics indicate a greatly heightened demand in the token.
Maker’s price largely fluctuated in the $500s throughout most of December, though by New Year’s Day it crossed $600, a growth spurt that remained an important portent for its performance since. On January 6 it hit a remarkable ATH (albeit briefly) of $1,244. Today it stands at an impressive ATH of around $1,750.
MKR’s recent rally is the result of a growing DeFi sector. MKR is a governance token that helps stabilize MakerDAO’s native stablecoin, DAI, at a price of $1.
Buying a governance token is like buying shares in a company. MKR holders, for example, gain voting rights in MakerDAO’s continuous approval voting system. This incentivizes holders to vote in a way that benefits the system, so as not to devalue their tokens.
Dai has had no such luck today: its trading volume fell by almost 20%.
Cryptos across the board seem fairly safe on the back of Bitcoin’s ongoing historic bull run. The highest gains made today are by Bitcoin spinoffs Bitcoin Cash and Bitcoin SV, which have both grown by 50% in the last week.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.