$MKR The most direct reason for the surge these past few days!!!
1. MakerDAO's big moves
Recently, MakerDAO (the original owner of MKR) announced several new plans, including increasing the deposit interest rate for the stablecoin DAI and expanding investments in real-world assets (RWA).
The market believes this will bring in more revenue, which is directly beneficial for MKR (as MKR is a governance token, if the project makes money, it may buy back and burn tokens).
2. Large institutions/whales entering the market
On-chain data shows that institutional-level wallets are accumulating MKR at low prices, possibly optimistic about the recovery of the DeFi sector.
When a few large holders buy, the price gets pushed up.
3. Shorts being squeezed, accelerating the rise
MKR had been stagnant for too long, and many people were shorting it. Suddenly, there was a surge, forcing short sellers to cover their positions, further driving up the price.
4. Overall recovery of the DeFi sector
Recently, Bitcoin has stabilized, and funds are starting to flow back into DeFi projects, making MKR, as a long-established leader, a target.
MakerDAO has indeed announced new proposals (increasing DAI yields, investing in U.S. Treasury bonds, etc.), which are not purely speculative.
However, the sharp rise also has elements of short-term speculative trading.
If it has already risen, do not blindly chase, wait for a pullback before considering.
In the long term, MKR has good fundamentals, but short-term volatility may be large.
Remember: after positive news comes out, be cautious of "buying the expectation and selling the facts" leading to a dump.
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