Maker’s recent announcement that the company was going through a rebranding led to its current $MKR price issues.
While the cryptocurrency markets are struggling to recover today, Maker’s $MKR token has seen some significant intraday losses.
At $1,797, Maker is trading, down roughly 6% from where it was 24 hours ago. The price of $MKR has decreased by slightly more than 11% over the past seven days.
In contrast, the value of the original cryptocurrency, Bitcoin ($BTC), has not changed much over the past day, trading at roughly $59,806. Over the course of the week, Bitcoin fell by just under 2% overall.
Maker’s $MKR: Primer and Analysis
The $MKR token of Maker is used for capital and governance. Maker is a smart contract lending platform where customers can obtain loans by pledging collateral in return for $DAI, a stablecoin pegged to the dollar.
It is interesting to note that Maker’s problems with the $MKR price follow the company’s recent announcement of a rebrand. The Sky ecosystem is now powered by MakerDAO, which on September 14 will introduce the $SKY governance token and the $USDS stablecoin.
🆕 MakerDAO has rebranded to @SkyEcosystem and will launch its new USDS stablecoin on Sept. 14.
— The Defiant (@DefiantNews) August 27, 2024
The move marks a major milestone in the project's Endgame overhaul.
"Sky represents the complete transformation of Maker," the project's founder, @RuneKek, told The Defiant 👀…
Both $DAI and $MKR will continue to exist. These tokens can be redeemed by users for $SKY and $USDS. Each $MKR will purchase $24,000 $SKY, while $DAI trades for $USDS on a one-to-one basis.
Even so, Maker’s response to the news was negative; at that point, the token dropped below $2,000 from its mid-July high of $3,000. Strong support for $MKR is located around $1,800, and a rising relative strength index (RSI) of 31 will aid in overnight stabilization. Nevertheless, investors will be hoping that the price consolidates around its $1,844 30-day moving average.
