The Ethereum based altcoin Maker (MKR) is in today’s crypto news for its recent surge of 50% which is in the focus of the headlines recently. The token and decentralized governance platform on Ethereum has increased against the US dollar all while the valuation of the crypto market only increased by 6% in a new corrective rally that was fueled by the strong performance of Bitcoin over the past few days.
Even though Bitcoin corrected today, other major digital assets such as Litecoin and Ethereum have pumped the growth. In the last several hours, the price of MKR exceeded $700 on some crypto market data platforms. However, the surge apparently occurred due to an issue in calculating the supply of MKR following the migration of its development funds.
Over the past 10 days, Maker (MKR) grew slowly. As a blockchain network that operates a stablecoin and a collateral loans system, Maker’s stablecoin named Dai maintains its value through an algorithm and it is mainly used as the base currency of the loans system.
According to Sharon Manrique’s explanation from MyCrypto.com:
“Maker is able to make Dai a Stablecoin due to its Target Rate Feedback Mechanism (TRFM). The TRFM is an automatic mechanism that the Dai Stablecoin System employs in order to maintain stability. The Target Price of 1 Dai is $1 USD, so the Target Rate determines the needed change of price of Dai over time in order to reach the Target Price during a market swing.”
This way, using Dai, the users on the Maker loans system put up cryptocurrencies such as Ethereum as collateral in order to borrow capital in terms of USD.
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“Rug pull senses tingling. I managed to make it here up in $BTC, up in $USD. Going to keep it that way – tethering ~75% of my $crypto holdings. Playing with the rest. Maybe I get left behind, but I don’t think so.”Despite Bitcoin's increased dominance which now sits at its all-time high of 54.2%, the technical perspectives show that the great altcoin boom on the market is likely to produce a boost - and that the future altcoin news may show us a lot of new capital and confidence from investors. However, this altcoin boom is only possible if Bitcoin sees a strong upside movement and stabilizes above the crucial resistance levels. Currently, the daily spot volume of BTC is at around $580 billion which is still a big up since the first week of March - and a good sign that the great altcoin boom may be around the corner.
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