Stablecoin

Convergence

Flow

MN Coin

Divergence

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/makerdaos-dai-stablecoin-supply-dips-to-new-low" rel="noopener noreferrer nofollow">MakerDAO’s DAI Stablecoin Supply Dips to New Low</a><br></p>
<p style="text-align: justify">Recent data showcased a significant drop in the supply of MakerDAO’s stablecoin, DAI, marking its lowest point since August of the previous year. The decline is linked to the unique market mechanics of the protocol, which operates through a Collateralized Debt Position (CDP) framework.</p>
<h2 id="sharp-decline-in-dai-numbers">Sharp Decline in DAI Numbers</h2>
<p style="text-align: justify">The most noticeable reduction occurred between January 30 and 31, with a 6% fall in DAI’s supply, plummeting from 5.2 billion to 4 billion in a single day. Concurrently, MakerDAO’s native <a href="https://en.bitcoinhaber.net/metaverse-and-nft-sectors-navigating-through-the-bear-market" rel="noopener noreferrer nofollow">cryptocurrency</a>, MKR, was priced at $2,009 according to recent CoinMarketCap figures.</p>
<p style="text-align: justify">Analysis of MakerDAO’s technical indicators revealed that the bears took control of the market as early as January 18, with the Moving Average Convergence Divergence (MACD) failing to trigger a significant price drop. The Relative Strength Index (RSI), reading at 56.14, suggests a potential upward trend and signals that the market might still be in a bull accumulation phase despite bearish concerns.</p>
<h2 id="insights-from-on-chain-data">Insights from On-Chain Data</h2>
<p style="text-align: justify">On-chain metrics, including the Chaikin Money Flow (CMF), confirm a positive liquidity trend for MKR, showing a rise above the zero threshold. This uptick to 0.03 in the CMF indicates a stronger market attributable to greater token accumulation than selling activities. However, market participants are advised to tread carefully as the oscillator’s status implies the possibility of a stronger, underlying bearish movement over the long term.</p>
<p style="text-align: justify">While the short-term outlook shows MKR’s resilience against a declining trend through sustained demand and bullish activity, the overall situation suggests that the market might be facing a period of accumulation that is not robust enough to counter longer-term bearish tendencies. The continued drop in DAI supply reflects the effects of the CDP model and the market’s response to it.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/makerdaos-dai-stablecoin-supply-dips-to-new-low" rel="noopener noreferrer nofollow">MakerDAO’s DAI Stablecoin Supply Dips to New Low</a></h5>

MakerDAO’s DAI Stablecoin Supply Dips to New Low

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