Maker was one of the first current-gen DeFi platforms to gain any real traction. Although the project is still evolving, it seems to be losing some of its momentum lately. Particularly the MKR median transaction volume is drifting to new eight-month lows.
A new MKR Transaction Dip
It has been a while since the previous median transaction volume for MKR was recorded. Between late March of 2020 and today, a lot has happened in the cryptocurrency space. All markets have overcome a significant dip, resulting in some more prominent momentum.
For Maker, the project behind MKR, a lot has changed as well. It has successfully risen the ranks among DeFi platforms and even claimed the top perch for a while. That situation has also come to change, as its total value locked sits $400 million below Uniswap. The gap to Aave remains relatively big, thus no further drop in overall TVL rankings should be expected.
At the same time, it appears that fewer people are conducting large MKR transactions. That is not necessarily surprising, nor a bad thing. Fewer transactions for large sums of this token would indicate some price stability. That in itself is a rare trait as far as DeFi assets are concerned.
The current median transaction volume for MKR is just 0.453. This is a steep decline from the double-digits recorded not that long ago. For a token valued at over $572, this is not necessarily a problematic statistic. Just 0.453 tokens is a higher value compared to most other cryptocurrency assets on the market today.
MKR Transfer Rate Looks Healthy
Looking at some other statistics pertaining to Maker, there is room for optimism. The number of transfers per second has increased since September 9th, without slowing down. Yesterday, there were 0.0167 transactions per second. Not necessarily an impressive figure, but it is more than sufficient, by the look of things.
Keeping all of the above in mind, there isn’t anything serious to worry about for MKR holders. The network looks healthy, even if the median transaction volume is drifting lower. Given Maker’s strong market cap and prominent position in the DeFi ecosystem, this appears to be a minor blip on the radar.
The timing of reaching this 8-month low on median transaction volume is a bit unfortunate, though. It may be a sign of the overall “hype” slowing down. DeFi has been in a bubble of sorts, yet there are cracks in the facade. Keeping close tabs on the final months of 2020 may prove worthwhile.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org