Maker Governance Greenlights LitePSM Upgrade: Can MKR Hit $3k?
Maker Governance Greenlights LitePSM Upgrade: Can MKR Hit $3k? Maker bulls exert significant effort to counter the dampening sentiment in the cryptocurrency market, resulting in a 5% price increase for MKR to $2,850.Bitcoin and most altcoins plunged into negative territory after Monday’s strong performance, which saw Bitcoin climb to $70,000. A 3% decline in total market capitalization to $2.5 trillion underscores the growing selling pressure. Maker Begins LitePSM Upgrade Rollout Maker Governance has voted to approve the implementation of LitePSM, a high-efficiency upgrade to the PSM.PSM is a tool to maintain DAI’s peg to the US dollar. It allows users to swap DAI for supported stablecoins like USDC at a 1:1 ratio. This arbitrage mechanism helps stabilize DAI’s price by preventing significant deviations from its target value. Maker Governance has approved the latest Executive Vote. → https://t.co/un2Ux3Cv8b The changes described below will be available for execution within the Maker Protocol on July 30th, at 20:29 UTC. 🖥️ LITE-PSM-USDC-A Phase 1 Actions The first phase of the migration from… pic.twitter.com/gSGVv1Ma8X — Maker (@MakerDAO) July 29, 2024According to Dewiz, a DeFi Engineering Services provider, PSM came to life “during DeFi Summer to tame $ Dai’s rollercoaster.” Critics faulted the system for hogging Dai supply amid massive spikes in gas.The introduction of LitePSM will see users of the stablecoin Dai slash gas fees, access smoother Dai swaps, and yield more. LitePSM’s main objectives are maintaining the Dai peg the US dollar by minimizing volatility, providing liquidity, and managing the stablecoin’s systemic risk.Dai is a stablecoin in the MKR ecosystem. It is pegged to the US dollar, allowing investors to access DeFi platforms to facilitate swaps and asset trading. Dai boasts a $5.3 market cap and is the 19th largest cryptocurrency.MKR Price Targets $3,000 Following Breakout After MKR price topped out at $3,118 last week, it assumed a downtrend between two slanting trend lines, forming a falling wedge pattern.With every step taken downwards, volume decreased, suggesting that sellers lost their grip and allowed the bulls to turn things around.Support at $2,600 allowed fresh liquidity collection, arming MKR price for a strong trend reversal. Traders increased exposure to MKR longs upon breaching the upper trend line, with the stop loss slightly below it.A 10% increase in price is anticipated, bringing MKR near the $3,000 level. A golden cross pattern formed with the 20-day EMA crossing above the 50-day EMA affirms the ongoing uptrend. The MACD buy signal is another bullish factor when trading MKR this week. MKR price chart | TradingviewMKR needs to find support above the previous day’s open of $2,825; otherwise, sliding under it could spook traders, who may move quickly to close positions and shift to short the token. Such an occurrence may accelerate the correction toward the initial support at $2,700 with the possibility of an extended decline to $2,600. Frequently Asked Questions (FAQs) This is a new system upgrade that Maker is implementing to maintain Dai’s peg to the US dollar while reducing gas fees and enhancing security. The rollout of LitePSM and a falling wedge pattern breakout could lead to a breakout above $3,000. Traders should be keen on support areas at $2,700 and $2,600 because MKR could drop to $2,000 if they break. On the upside, a breakout above $3,000 could trigger FOMO and a further price increase. Related Articles Ethereum Post-ETF Rally Likely to Outshine Solana Gains XRP Price Steady Above $0.63 as SEC Meeting Sparks Speculation Polkadot Price Likely to Crash 13% Despite Recent Protocol Upgrade John Isige John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.