- MKR wins as one of the DeFi tokens that have managed to maintain most of its value.
- MKR holds healthy premium despite recent market headwinds.
The recent sell pressure in the crypto market this month weighed heavily especially on Altcoins. Despite that, some DeFi tokens like Maker [MKR] had a softer fall than most of their counterparts.
Read about MKR’s price prediction for 2023/2024
MKR stands out from most of the altcoins according to IntoTheBlock’s recent profit and loss analysis. The report suggests that 90% of crypto holders are currently at a loss. It also noted that there are now fewer MKR holders at a loss compared to a year ago.
While many altcoins are experiencing unprecedented losses, with over 90% of holders incurring losses, principal DeFi tokens are showing some resilience.
An examination of the profit and loss profiles of holders over the past year reveals that most are in a similar position… pic.twitter.com/miXAX5YdLX
— IntoTheBlock (@intotheblock) August 24, 2023
According to the analysis, MKR had the lowest percentage of holders at a loss at 52.36% out of the top DeFi tokens. Compound had the highest loss profile at 92.92%. According to the analysis, one of the main reasons for MKR’s win is the token’s overall bullish performance so far this year.
A look at MKR’s price action on a year-to-date basis confirms this. For instance, its $1071 price tag represents a 117% premium from its lowest level in 2023. Despite this, MKR recently pulled back by roughly 20% from its $1369 peak at the start of August.
These findings confirm that the token has indeed faired quite well, especially for those that bought it at the start of the year.
Source: TradingView
Assessing MakerDAO’s profitability
Despite the above findings, the level of profitability within the last 30 days reflects the bearish market conditions during the same period. MKR’s MVRV ratio recently fell to a 4-week low during the trading session on 23 August. This confirms a drop in profitability to the lowest level so far this month.
Source: Santiment
Whales often have the biggest impact on prices. The MKR supply held by top addresses has also been on a downward trajectory. This is confirmation that whale balances have gotten lighter due to outflows which have consequently contributed to sell pressure.
Is your portfolio green? Check out the MKR Profit Calculator
MKR’s mean coin age metric maintained an overall upward trajectory despite the whale outflows and bearish price action. So, why is this happening? Well, the mean coin age metric is used to highlight unspent transaction outputs over time. In other words, it shows that coins hodled for a long time are still maintaining that status, thus a focus on long term hodling.
Source: Santiment
The fact that long term hodlers are opting to keep their coins is a good sign for the bulls and MKR’s long-term potential. However, a dip in the mean coin age could signal capitulation from long term hodlers.