Maker (MKR) Price Booms as Stablecoins Trend Accelerates

Maker DAO (MKR) shows a strange crypto phenomenon - that even high-priced coins are capable of staging a robust rally, adding as much as 20% to their price in a day. MKR, one of the coins that secure the DAI dollar-pegged asset, is becoming hot again, somewhat recalling the success of DigixDAO a few months back.

MKR showed a marked increase in prices, as well as record volumes of $3.16 million. The high price of the coin is due to the relatively low supply, a total of 1 million MKR. The climb of the MKR market price, however, mystified everyone, as the coin is still far from mainstream popularity.

In just the past day, MKR started its climb from around $603, and continued to as high as $771.09, with no signs of the trend decelerating. MKR increased its price in jumps several times today. In the past week, MRK first crossed the $500 price, and then accelerated the rally. The latest MKR price climb started from lows of around $470 on October 1.

The price climb of MKR is also showing anomalies, with a much higher price on HitBTC, as well as OasisDEX, the chief exchange where MKR sees more than 50% of its trading volumes. IDEX and RadarRelay, two more decentralized exchanges, also see MKR appreciate robustly. MRK is also on track to repeat its peak prices against Bitcoin (BTC), currently standing at 0.12 BTC, just a shouting distance from the 0.14 BTC levels in mid-January.

Additionally, the DAI stablecoin related to the Maker project, has increased its supply by nearly 5 million coins in the past week, up to nearly 60 million coins. A month ago, just 42 million DAI were in circulation. DAI is also extremely active on HitBTC, as well as OasisDEX, possibly also increasing the liquidity and value of the Maker ecosystem. MKR is also a governance token, having the power of decision within the Distributed Autonomous Organization (DAO).

The price climb of MKR is spectacular, but traders warn of low liquidity. MKR is not among the best-known coins, and is so far supported by its own ecosystem of staking, loans, and the issuance of DAI dollar-pegged coins.

The warning against the Maker and DAI ecosystem criticizes the collateralization with Ethereum, which is supposed to back the value of DAI. The value of MKR may rise as more ETH is injected into the ecosystem. However, the Maker project still has to prove itself as being capable of preserving the value of both MKR and DAI.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.