Maker on it's way to all time high
Assets covered: Maker (MKR)
Metrics used: Value locked, Daily active deposits, Exchange Inflow, Social volume, Network Profit Loss, Age consumed, MVRV, Supply distribution, Whales transaction count
Maker, in all it's glory, was up 35% on Thursday. The coin that nobody really seems to like to buy. Even though it's a sort of the most "stable" investment in ERC-20 DeFi segment. One of the coins that haven't pumped during the DeFi summer. It's not really a 'darling' of speculators.
Where is Maker now in sense of onchain and social data?
How sustainable is the pump?
Total value locked
Maker is still #1 by value locked in it's contracts. $9.92B which is almost 10% of all value locked in ERC20 DeFi. ATH BTW:
Exchange activity. Daily active deposits and exchange inflow
Spikes in deposits and exchange inflow might suggest that we were approaching a local top.
We've got a nice spike right at the tops! And another spike today. So far it's looking pretty toppish. You could see that previous spikes pinpoint a local top, as usually happens. Top hype comes around the top.
A significant cluster of spikes compared to the last 4 months indicating people seem to be taking quite a bit of profits lately. So to say we might witness a beginning of a redistribution for Maker in general.
We can see a significant spikes in age consumed on the right. These spikes often indicate a trend shift or upcoming volatility for a coin. Which is good for a top.
MVRV is not yet where it was during the January pump. It is, however, very close to February peak. But we don't think we can expect the same levels. Maker have rarely reached these MVRV levels. So the current pump is probably not expected to be very sustainable. We would expect Maker to go down to Earth. Looks super overvalued.
This particular group of holders from 100 to 1K MKR seems quite interesting because it dumped on previous tops. At the moment we're not seeing this group of traders start to take profits. This group however seems to have the largest hold on the market, owning around 10% of supply. And they are not dumping just yet.
This metric also seems to be a potential top indicator. And it suggests that there's a large number of whale transactions. If you combine it with inflows to exchanges, spikes in deposits, spikes in network profit loss, spikes in age consumed, it does paint a concerning picture for Maker, especially with a social volume being high as well.
Watch this space.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.