MakerDAO suffers a fall in annualized fee income, thanks to SVB
18 Mar 2023 10:30 PM
MakerDAO’s annualized fee income has been decreasing since SVIB’s collapse. Waning buying pressure puts MKR’s price at risk of further decline. The annualized fee income of leading decentralized finance protocol MakerDAO [MKR] has declined since the collapse of Silicon Valley Bank (SVIB) on 10 March, data from MakerBurn revealed. At 43.23 million DAI tokens at […]...
- MakerDAO's annualized fee income has decreased by 11% in the last week.
- The decrease in fee income is due to the DAI stablecoin losing its $1 peg after USDC's issuer confirmed that it held deposits at SVB.
- MKR's price rallied after Federal Regulators announced to make SVB's depositors whole, but buying momentum dropped gradually causing MKR's price to initiate a downtrend.
- MKR's price has been trading within a tight range in the past two days and key momentum indicators are below their respective neutral lines.
The article presents a negative sentiment towards MakerDAO's annualized fee income decrease and MKR's price decline. The decrease in fee income is attributed to the loss of the $1 peg of DAI stablecoin, which resulted in a temporary loss of dollar parity for DAI. MKR's price rallied but gradually dropped causing a downtrend. Key momentum indicators are below their respective neutral lines, and MKR traders have become increasingly skeptical of sudden price swings.