Why is Maker (MKR) crypto up 35%?

4 min read | May 11, 2022 10:31 AM EDT | By Versha Jain

Image source: © Aksitaykut | Megapixl.com

What Is Maker (MKR)?

Maker (MKR) is an Ethereum-based governance token for Maker DAO (Decentralized Organization) and Maker protocol (a software platform). It is used to issue and manage DAI stablecoins.

The Maker project, launched in 2017, is tasked to operate DAI, a community-managed, decentralized, collateral-backed cryptocurrency soft-pegged to the US dollar. It is supported on Ethereum and other blockchains. It is one of the earliest DeFi projects.

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Data Source: coinmarketcap.com

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Maker allows token holders to participate in DAI’s governing process directly. They can vote on aspects like adding a new collateral asset type to the protocol, enabling them to submit new cryptocurrency to mint DAI, change DAI savings rate, platform up-gradation, etc.

The Maker Vault is a component of Maker Protocol to generate DAI against locked up collateral. Users generate DAI against their collateral and destroy it after repaying their DAI balance. Hence, DAI’s total supply changes depending on the Vault usage.

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The MKR token is ranked 43rd by market value by Coinmarketcap. It can be traded on crypto exchanges like Binance, Bybit, FTX, etc. It has a market capitalization of US$1.6 billion. Its total circulation is 977,631, and the total supply is 977,631.

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Bottom line:

The MKR’s trading volume rose 169.62% to US$567 million in the last 24 hours to Wednesday morning after the update. The broader crypto market fell over 9% at the same time.

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