The Maple price jumped sharply on Friday as demand for the Decentralized Finance (DeFi) ecosystem continued growing. MPL rose to a high of $61.30, which was the highest level since April 17th. It has risen by more than 23% from its lowest level this month, bringing its total market cap to more than $296 million.
What is Maple and why it rising?
Decentralized Finance (DeFi) is one of the biggest industries in the blockchain industry with over $210 billion in assets. This is a substantial sum of money considering that the industry was not in existence a few years ago.
Maple is a DeFi platform that offers services that are similar to other popular networks. It describes itself as the Crypto Capital Market as it provides undercollateralized loans for institutional borrowers. The network receives funds or liquidity from users seeking to earn a return and then extends them to institutions.
According to its website, the network has originated loans worth over 1.2 billion USD Coins. From those loans, lenders have received interest worth over 24.4 million USDC. At the time of writing, it has provided about 82 loans.
Some of the loan pools in Maple Finance are provided by Celcius, BlockTower Capital, Alameda Research, and Orthogonal Trading among others. Alameda is the company founded by Sam Bankman, the founder of FTX.
The Maple price is rising as the total value locked in the protocol ticked upwards. According to DeFi Llama, the network now has over $82.4 million in total value locked (TVL). This amount is substantially higher than where it was in March this year.
Maple price prediction
The Maple price has been in a bullish trend in the past few days. It has jumped by more than 22% from the lowest level this month. The coin has moved above the 25-day and 50-day moving averages while the MACD indicator is crossing the neutral level. It has also moved above the important support level at $51.32. It had failed to drop below that support several times this month.
Therefore, it seems like bulls are now in control and that the coin’s price will continue rising as they target the key resistance at $68.88. A drop below the support at $51 will invalidate the bullish view. Here are more cryptocurrencies to invest in.