MKR Plummets 511.8% Amid Hard Fork Delays and Voting Process Concerns

CryptoPulse AlertThursday, May 29, 2025 11:49 am ET
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On May 29, 2025, MKR token prices fell 511.8% over 24 hours to $1666.5, despite a 226.79% weekly gain, 1224.35% monthly rise, and 1171.74% annual increase. The sharp decline followed technical and governance-related developments tied to the MakerDAO protocol.

Sharp Drop Follows Governance Delays

The 24-hour price collapse coincided with prolonged delays in a critical governance vote for MakerDAO’s upcoming hard fork. The proposed upgrade aimed to address scalability concerns and reduce gas fees on the Ethereum network. However, voting thresholds were not met within the scheduled timeframe, sparking uncertainty among holders. Analysts noted that prolonged delays could weaken investor confidence in the protocol’s ability to execute timely upgrades.

Market Reacts to Technical and Governance Concerns

Traders cited the hard fork’s uncertain timeline as a key factor in the price drop. The upgrade’s postponement raised questions about MakerDAO’s governance efficiency, as delays risked compounding technical debt and operational risks. Additionally, volatility in crypto markets broadly amplified MKR’s price swings, with traders liquidating positions amid broader sector instability.

Analysts Highlight Structural Risks

Analysts project that MKR’s recovery hinges on resolving governance bottlenecks. “Without clear progress on the hard fork, the token faces prolonged volatility,” said one researcher. Meanwhile, the token’s 24-hour trading volume dropped by 68% compared to earlier this month, signaling reduced short-term liquidity.

Long-Term Outlook Remains Divided

Despite the short-term decline, MKR’s 12-month gains reflect ongoing institutional interest in DeFi governance tokens. However, the recent drop underscores the challenges of balancing protocol upgrades with market expectations. MakerDAO’s next governance update is expected to outline revised timelines for the hard fork, though no details have been confirmed.

Regulatory Uncertainty Adds Pressure

Separately, ongoing debates over global crypto regulations have dampened risk appetite for governance tokens. While MKR’s fundamentals—such as its role in stabilizing DAI—remain intact, external macroeconomic pressures have amplified sensitivity to protocol-specific risks.

Technical Indicators Signal Bearish Momentum

Technical analysts highlighted bearish candle patterns on MKR’s short-term charts, with moving averages diverging from price action. The token’s 24-hour trading range narrowed to $1,450–$1,920, suggesting hesitancy among buyers.

Conclusion: Governance Execution Critical to Recovery

MKR’s price trajectory now depends on MakerDAO’s ability to finalize the hard fork and demonstrate governance efficacy. Until then, volatility is expected to persist, with investor focus shifting to protocol updates and broader market stability.