MKR Crypto Defies Market Turbulence With 30% Gain on the Week

  • Maker’s (MKR-USD) MKR crypto is seeing shine as it posts a 30% gain over the last seven days
  • This upward climb has made MKR one of the best investments in the wake of last week’s volatility
  • The network is particularly noteworthy as a stablecoin protocol, given the news around TerraUSD’s (UST-USD) recent collapse
A concept Maker (MKR) token in front of a trading chart.
Source: Shutterstock

Digital currency investors have been reeling for the most part recently. However, there’s a lucky sect of crypto faithfuls that are celebrating the last week of trading rather than ruing it. Specifically, those who invested in the MKR crypto are looking at some hefty gains as the network beats the rest of the market.

Getting into the year, Maker certainly had its ups and downs. It’s a long way from its all-time high of nearly $6,400. For the first few months of 2022, the token had a series of peaks and valleys. Then, when April came along, MKR began a steady and steep descent, bottoming out at about $1,000.

Recent days have been much kinder to this name, however, which comes as a surprise given current market conditions. In the wake of things like the Federal Reserve rate hike and Bitcoin’s (BTC-USD) drop below $30,000, most of the market has remained in the red. Maker is defying this trend with a hot week and some change. On the last seven days, the MKR crypto has posted gains of around 30%. Of the top 50 largest projects by market capitalization, MKR is one of the few cryptos in the green for the past week.

MKR Crypto: What’s Causing the Rise for Maker Prices?

What’s actually driving the MKR crypto so high? It could certainly be the project’s ties to the Dai (DAI-USD) stablecoin. As you might recall, stablecoins were a hot topic last week given the crash in UST prices. The stablecoin’s woes were not its own to shoulder, either. Since the crash of the Terra (LUNA-USD) ecosystem, we’ve also seen stablecoins Tether (USDT-USD) and DEI (DEI-USD) de-peg from their $1 values.

That said, one project’s misfortune can be another’s benefit. Right now, it seems the UST crash is helping DAI; as UST falls off of investors’ radars, the token is overtaking it. Obviously, with less competition, investors are funneling more into the Dai network.

This increased attention on stablecoins is also helping the Maker network show off its unique approach. Maker is relevant to Dai because its community commands all changes to the DAI protocol. Maker is a decentralized autonomous organization (DAO), which means MKR crypto holders themselves make all decisions pertaining to the network. Specifically, the Maker DAO exists to oversee the Dai network.

Maker users craft proposals on DAI tweaks, which the community can vote on. If passed, these proposals are implemented by developers. Seeing how Terra developers fumbled their relief effort so badly, investors could be perking up at the idea of overseeing a network themselves.

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.

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