Crypto market data analysis firm Santiment has published data suggesting bullish activity surrounding MKR — the token underpinning decentralized finance (DeFi) project MakerDAO.

On May 20, Santiment published data indicating bullish divergence between the number of daily active MKR addresses and price action for the token.

“$MKR looks to be forming a major bullish divergence in our Daily Active Addresses vs. Price Divergence model today,” Santiment tweeted. “MakerDAO’s network is indicating a high level of unique addresses transacting, which typically can lead to a price surge with some maintained longevity.”

Price versus Daily Active Address divergence for top altcoins: Santiment

“We're optimistic that $MKR is a solid asset to keep an eye on when #altcoins begin to heat up,” the firm added. “Watch closely to see if this divergence continues in the coming days and weeks.”

Maker suffers heavy "Black Thursday" losses

Maker was hit extremely hard amid the "Black Thursday" crypto market crash during March, with the loans underpinning the creation of Maker’s stablecoin Dai (DAI) becoming undercollateralized as the markets fell — with MKR crashing over 60% from $500 to $200 in roughly one day.

MKR/USD 1D Bitfinex: TradingView 

Maker would recapitalize its loans through a debt auction that saw freshly minted batches of MKR in exchange for DAI. Despite the dilution of MKR’s supply, the token rebounded into the low-mid $300 range during May.

Maker currently comprises the largest DeFi project by assets under management, representing 50.5% of the total decentralized finance sector.

Increasing activity surrounding the Maker protocol may partially result from Ether (ETH) investors accumulating ahead of the launch of ETH 2.0 — with the rise of DeFi driving many ETH investors to seek out vehicles for generating passive yield.