The chances for a MKR rally grows as the utility token reached record highs as per the skyrocketing utility statistics. In our latest altcoin news, we are reading more about the bullish appeal for the token.
Chris Burniske one of the partners at the venture capitalist firm Placeholder in New York outlined the steadily growing locked value inside of the MKR liquidity pool. The fund manager presented that MKR is an undervalued token because it didn’t receive the same investments as other tokens in the Defi space and that chances for MKR rally are growing:
“People mostly sleeping on MKR while utility goes through the roof, and conversations abound around its value capture model.”
As of this week, the TVL of Maker increased towards $2 billion which is the highest level recorded. The capital came in form of USDC deposits comprising 0.6 percent of TVL at the start of September. However, by the end of the month, the share surged to about 20 percent which is $400 million as of the latest. The data aggregator Messari credited the governance of the platform for the higher capital influx. The US-based crypto indexing portal explained that MKR developers restored the DAI peg which means they can now ensure “incentivizing a stablecoin-collateralized debt with higher debt ceilings and lower liquidation ratios.”
Making the debt creation cheaper allows people to mint DAI by allocating cheaper resources which is promised to increase the demand for the stablecoin while putting pressure on its price. It’s essentially when DAI becomes a target of the yield farmers, as they lock DAI in other liquidity pools, thereby pushing the price to reach $1:
“Dai remains one of the most used stablecoins across DeFi,” noted Messari. “As the industry continues to grow at this rapid clip, it’s only natural that Dai will continue to grow with it given its entrenched network effects.”
MKR marked a bullish comeback over the past 14 days on as it rebounded by 38% to $600 from its low at $434. Messari noted that the value of the token could have been even higher if there weren’t other DeFi projects that stole its spotlight. The portal blamed Maker’s boomer persona which promotes low-interest rates thus impacting MKR earnings. With the interest rates increasing, MKR will regain much of the lost value against other DeFi tokens like YFI and COMP.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
DC Forecasts - Newsletter and get recent news directly to your inbox! Daily Newsletter Bitcoin NewsAltcoin NewsLitecoin NewsEthereum NewsBlockchain NewsBitcoin ScamsRegulationExpert AnalysisPress ReleasesCardano NewsRipple NewsLibra NewsBitcoin Cash NewsTron NewsNexo NewsVechain NewsStellar NewsTezos NewsBinance Coin NewsCoinbase NewsChainLink NewsEOS NewsIOTA NewsTether NewsBitcoin SV NewsMonero NewsEthereum Classic NewsDash NewsUNUS NewsCosmos NewsMECX Token NewsNEO NewsDC Forecasts Announcements
Daily Newsletter Bitcoin NewsAltcoin NewsLitecoin NewsEthereum NewsBlockchain NewsBitcoin ScamsRegulationExpert AnalysisPress ReleasesCardano NewsRipple NewsLibra NewsBitcoin Cash NewsTron NewsNexo NewsVechain NewsStellar NewsTezos NewsBinance Coin NewsCoinbase NewsChainLink NewsEOS NewsIOTA NewsTether NewsBitcoin SV NewsMonero NewsEthereum Classic NewsDash NewsUNUS NewsCosmos NewsMECX Token NewsNEO NewsDC Forecasts Announcements
DC Forecasts provides a comprehensive source of the latest news about cryptocurrency news daily. Read more on our about us page for details.