Daily News | Altcoins Surged While BTC and ETH Remained Flat, MakerDAO Revenue Dropped 42% As Focus Shifts
Crypto Daily Digest: A Flat Week for Bitcoin, Ethereum Experiences a Dip After US Jobs Report
Good morning, traders. New week, new beginning. Let’s get after it relentlessly.
The trading week in Asia started with mixed signals from equity futures and geopolitical tensions, while the yen weakened against the dollar after the government considered the next head of the BOJ. The US Dollar strengthened on strong payrolls and low unemployment, raising inflation concerns.
The US stock market rebound paused after the US jobs report, but the S&P and Nasdaq still gained. Treasuries yields rose, signaling the Fed’s potential to remain aggressive in fighting inflation.
On the other hand, Bitcoin (BTC) was mostly unchanged after the release of jobs data on Friday but declined roughly 2.1% to 22,933 over the weekends. Meanwhile, Ether (ETH) rose 1.2% on Friday but also traded down by 2.2% to 1,630 over the weekend. The total crypto market cap, per Tradingview data, also fell by nearly 2% to $1.016T from Friday’s close of $1.036T.
Last week saw significant growth for Altcoins Optimism (OP), Fantom (FTM), ImmutableX (IMX), and Dydx (DYDX), with gains of 33%, 34%, 40%, and 31% respectively. However, Aptos (APT), which performed well last week, saw a 6% decrease over the last seven days.
Topic of the Day: MakerDAO Shifts Focus, Experiences Drop in Revenue
MakerDAO, the builder of the platform that issues the stablecoin DAI, experienced a drop in revenue in 2022, as the DeFi protocol shifted from crypto-based lending to the real-world asset market, according to a report from Steakhouse Financial.
The revenue fell 42% to 65 million DAI ($65 million) in 2022 from 112 million DAI in 2021, leading to a decrease in net operating earnings by 80% to 19 million DAI in 2022 from 90 million DAI in 2021. The operating expenses rose to 46 million DAI in 2022, more than double the previous year’s figure. The decrease in earnings can be attributed to the crypto market downturn in 2022 and the impact on both centralized and decentralized participants in crypto lending.
Maker’s total balance also shrank 43% to 5 billion DAI at the end of 2022 from 9 billion DAI at the end of the previous year, according to Steakhouse. The shift to real-world assets led to a 37-fold increase in the volume of Maker’s real-world asset vault balance to 640 million DAI at the end of 2022. The vaults accounted for 70% of MakerDAO’s gross revenue in December despite only accounting for 10% of the DAI minted during that period.
MakerDAO (MKR) $708.48 (+1.79%) - Neutral Outlook
Overview:
- Closest daily support zone: 699.70 - 674.11
- Closest daily resistance zone: 699.70 - 723.12
- Key Level: 632.00 (Monthly High of Jul. 2022)
In January, MKR rose to a height of 46.53% before settling with 28.84% gains by the end of the month. Since the beginning of February, MKR regained nearly 8% to touch a descending trendline which makes it a target for many breakout traders. If it does make a successful breakout that closes above the trendline on the day, MKR will likely target the 844.42 level which is the monthly height of August 2020.
Daily Resistance zones
- 699.70 - 723.12
- 741.58 - 759.32
- 778.26 - 807.75
Daily Support zones
- 699.70 - 674.11
- 658.48 - 643.58
- 632.00 - 618.65
