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Marker’s MKR Outperforms the Broader Crypto Market in February with 37% Gains
Summary: Maker (MKR) , a Ethereum-based token, is outperforming the broader crypto market since February, with a 37% gain. According to Bitpush data, the cryptocurrency is ranked 16th by market capitalization, with one MKR was valued at 4.6 ETH on February 14, which was the the highest level since October 8. Currently, MKR is trading at ...
Maker (MKR) , a Ethereum-based token, is outperforming the broader crypto market since February, with a 37% gain.
According to Bitpush data, the cryptocurrency is ranked 16th by market capitalization, with one MKR was valued at 4.6 ETH on February 14, which was the the highest level since October 8. Currently, MKR is trading at $513.
MakerDAO, a smart contract platform based on Ethereum's blockchain, supports the value of Maker's own stablecoin, DAI, by linking it to the US dollar through the Collateralized Debt Position (CDP) system.
CDP is a financial concept in cryptocurrency that developed in 2014 with the entire ecosystem of the Maker DAI project. Maker DAO aims at reduce price volatility by soft-pegged its stablecoin to the fiat currency.
Although, MKR fell 3.21% in the past 24 hours, it still outperformed than January. Through analyzing the certain price fluctuations, Maker tokens are created or destroyed to make their value as close to $1 US dollar as possible. The platform has been incredibly successful during the bearish market, with about 2% of Ethereum now locked up in MakerDAO.
More than 1.97 million ETH's have been locked in the primary Maker contracts so far, roughly 1.87% of all ETH in circulation, the number in last November was only 1%.
According to CoinDesk, Maker DAO's recent decision to raise its stability fee from 0.5% to 1% in order to reduce DAI's volatility against the US dollar. This becomes a welcomed move by many as a positive step toward greater economic security and stability for the team.
It is also worth to know that an automated Ethereum exchange called Uniswap replaced Ethfinex exchange this week as the number one venue for trading MKR/ETH. The trading value during the past 24 hours was over $329,000.
The exchange offers lower price for Maker while others have MKR listed at a premium, which provides an opportunity for the arbitrage trading between Ethfinex and Uniswap.
Disclosure: The author holds no cryptocurrency at the time of writing.
Image: pexels.com
Author: Max Li
Tags: Blockchain,Cryptocurrency,ETH,Ethereum,Exchange,Maker,MKR,Platform,Smart Contract,Stablecoin,Token,Trade
Link: Marker’s MKR Outperforms the Broader Crypto Market in February with 37% Gains [Copy]
