Maker (MKR) Survives Onslaught With 21% Gain As Other Top 100 Cryptos Suffocate

Christian Encila

2 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

In the midst of an onslaught in the crypto market today, only one crypto made the biggest gain: Maker (MKR).

At the time of writing, MKR was trading at $896, notching an impressive 21% increase in the weekly scale, and outperforming the rest of its rivals in the top 100 list of crypto market trackers Coingecko and CoinMarketCap.

Maker (MKR) Stands Out With Solid Gains

Source: Coingecko

MKR is up 35% in the last 30 days and 76% year to date, data shows. However, the token, with a market cap of $873.6 million, was still down nearly 85% from its all-time high (ATH) of almost $6,300, hit about two years ago in May 2021.

Source: Coingecko

In spite of the fact that the token fluctuated sideways between $760 and $800 in the wee hours of the morning, it broke out of its constricted range as soon as the sun rose. After that, MKR soared through the phases and touched $920 at its peak.

Source: CoinMarketCap

MKR is the utility token of the Maker protocol, which also serves as the system’s governance token and recapitalization resource. Non-mineable MKR tokens are generated based on the demand and supply of the stablecoin DAI.

MKR token holders administer the project via MakerDAO, an open-source community project on the Ethereum blockchain and a decentralized autonomous organization.

Maker (MKR). Image: The Coin Republic

Maker (MKR) is among the most significant decentralized apps (dApps) on the Ethereum blockchain. It was also the first decentralized financial (DeFi) application to garner widespread popularity.

The objective of the platform is to unleash the potential of DeFi by establishing an inclusive platform of economic empowerment, i.e., by providing everyone with equal access to the world’s financial markets.

Worry Surrounds Borrowing Of DAI

Meanwhile, a prospective change to one of DeFi’s oldest and largest protocols has the crypto community concerned.

A component of the proposed reconfiguration of MakerDAO would permit users to borrow its DAI stablecoin in exchange for its MKR governance token.

Market observers are concerned that allowing users to borrow DAI stablecoin against MKR might be compared to the mechanism underlying Terra’s (LUNA) ill-fated UST stablecoin, which crashed in May 2022 and washed out about $500 billion USD from the crypto market.

MKR total market cap at $877 million on the daily chart | Chart: TradingView.com

PaperImperium, a self-described “governance liaison,” remarked on Twitter:

“It’s devastatingly disappointing to see Maker’s co-founder pushing this plan […] it’s as if nothing was learned this cycle.”

It’s devastatingly disappointing to see @MakerDAO’s co-founder pushing this plan. It’s as if nothing was learned this cycle. pic.twitter.com/XQq8NydHqb

— PaperImperium (@ImperiumPaper) February 23, 2023

USDT Mkt Cap + BUSD Mkt Cap + USDC Mkt Cap + DAI Mkt Cap + FRAX Mkt Cap, Source: The Defiant Terminal

The Defiant Terminal ranks DAI as the fourth largest stablecoin with a market valuation of $4.1 billion on Ethereum.

According to PaperImperium, delegated tokens would return to circulation in the event of a liquidation spiral, pulling the value of MKR down.

As a result, this could make the protocol a sitting duck from malevolent actors who can quickly seize control over governance, as demonstrated by the Mango DAO attack.

-Featured image from Rare Gallery

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.