Cryptocurrency markets are quite bullish these days, with the price of Bitcoin soaring. Even decentralized finance space has showcased tremendous growth in recent times, which has been reflected in the growth of several tokens.
Maker’s governance token MKR has shown record growth in the last two days, and experts attribute it to the growing DeFi market.
MKR Token Reaches Highest Value Recorded in Last Two Years
Ethereum based governance token MKR showcased a record surge in price on January 6th, 2021, reaching its highest level in the last two years. The shares surged amid the increasing growth of the decentralized finance platforms.
MKR is the governance token of Maker for its decentralized organization MakerDAO and its decentralized lending platform. Experts attribute the growth of MKR token to the augmented supply of MakerDao’s native stablecoin DAI. As per the CoinDesk report, the co-founder of Delphi Digital Yan Liberman established the connection. DAI token is created when any user on the Ethereum blockchain deposits an asset into the Maker protocol and gets DAI against that asset. Maker provides voting rights to the MKR holders for its dai and protocol.
Within two days, the MKR token price has grown substantially to $1165.11, which is just about $103 lesser than its all-time high price of $1,798 recorded in January 2018. The token market cap has increased to $600 million and scaled up as the DeFi markets continue to flourish. There has been a growth of around 20percent in the last one week.
There has been substantial growth in the DeFi markets, and leading crypto firms are jumping the Decentralized Finance bandwagon. Just recently, ShapeShift announced integrating DeFi in its platform, completely transforming to DEX and getting rid of KYC requirements. Even though DeFi has been on a growth spree, MKR price was relatively stagnant, and the experts view the current price surge as a delayed effect of DeFi flourishment.
Ryan Watkins tweeted in October 2020 that MakerDAO is generating a high value of $27 million annually for its holders, which is the highest for any DeFi protocol. He further added in his tweets that Maker is demonstrating the capability to “capture value in DAI growth.”
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