• Maker (MKR) has surged 13% on Friday after the introduction of a token buy-back scheme by the Maker protocol.
• MKR/USD was last trading around $1140 per token, but went as high as $1250 earlier in the session to hit a fresh high since June 2022.
• Price predictions for Maker (MKR) remain mostly bullish with traders encouraged to diversify their token holdings by looking at meme coins as an alternative.
Maker (MKR) Surges 13% After Token Buyback Scheme
The Maker Decentralized Autonomous Organisation (DAO) and its decentralized finance protocol have introduced a token buy-back scheme which saw the MKR governance token pump around 13% on Friday. The price of MKR/USD rose from $1140 per token to a new high since June 2022 of $1250 earlier in the day.
Smart Burn Engine to Repurchase Up To $7 Million Worth of MKR Tokens
The token buybacks are part of Maker’s new Smart Burn Engine scheme, which uses excess DAI stablecoins sat in Maker protocol’s reserves to buy MKR tokens from a Uniswap pool. Buybacks are periodically triggered when DAI reserves exceed $50 million, leading to increased buy pressure on the market and causing an increase in scarcity of the MKR tokens.
Price Prediction – Is There More Room For Growth?
Maker (MKR) price predictions remain mostly bullish with its chart set-up looking very healthy after rebounding from a former downward trendline and finding support at its 21-Day Moving Average (DMA). If it can break through August 2022 highs at $1227, this rally should continue; however, any pullbacks to support in the $1077 area could be jumped on by bulls.
Meme Coins – An Alternative Consideration
For crypto investors with higher tolerance for risk and higher desire for near-term profits, meme coins might be worth considering as an alternative option. The best way to profit big in this market is to identify an unknown meme coin with low market cap that has potential for explosive growth if conditions are right.
Overall, despite taking a breather due to overbought conditions indicated by the 14-Day Relative Strength Index (RSI), traders are encouraged to keep an eye out for opportunities presented by pullbacks towards strong supports like those seen around$1077 area so they can jump on further upside rallies if conditions allow it. Diversifying their portfolios into meme coins is also recommended for those who seek higher rewards or higher risks than what is offered by traditional blue chip cryptocurrencies such as bitcoin or ether.