{"id":228121,"date":"2021-04-16T04:05:00","date_gmt":"2021-04-16T01:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/shift-toward-full-decentralization-pushes-maker-mkr-price-above-4k\/"},"modified":"2021-04-16T04:05:00","modified_gmt":"2021-04-16T01:05:00","slug":"shift-toward-full-decentralization-pushes-maker-mkr-price-above-4k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/shift-toward-full-decentralization-pushes-maker-mkr-price-above-4k\/","title":{"rendered":"# Shift toward full decentralization pushes Maker (MKR) price above $4K"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23e7e80c5a3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23e7e80c5a3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/shift-toward-full-decentralization-pushes-maker-mkr-price-above-4k\/#Demand_for_DAI_boosts_Maker_price\" >Demand for DAI boosts Maker price<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Shift toward full decentralization pushes Maker (MKR) price above $4K <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Stablecoins have become a significant foundational piece for the cryptocurrency sector because they serve as a deeply liquid base pair for most assets and also offer investors a secure place to capture gains. Data also shows that stablecoins play a significant role in functioning as a gateway for capital inflow to the crypto ecosystem.<\/p>\n<p>While the largest stablecoins in the market are currently controlled and issued by centralized entities like Tether or Circle, DAI and its issuer Maker (MKR) is one stablecoin project that keeps with the ethos of decentralization that the cryptocurrency community is founded on. <\/p>\n<p>Data from Cointelegraph Markets and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/MKRUSDT\/\">TradingView<\/a> shows that the price of MKR has increased by almost 100% in the past week, rallying from a low of $2,011 on April 7 to a new all-time high at $4,096 on April 15 on surging trading volume. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/9ae106bb-b6e1-4c6c-b559-3dd2869a3f4e.png\"><figcaption style=\"text-align: center;\"><em>MKR\/USDT 4-hour chart. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/MKRUSDT\/\"><em>TradingView<\/em><\/a><\/figcaption><\/figure>\n<p>Momentum for MKR has been on the rise in recent weeks as the ecosystem thanks to a focus on making the protocol fully decentralized and community governed. <\/p>\n<p>Governance has emerged as one of the sought-after features in the 2021 bull market as part of the wider decentralized finance (DeFi) movement, and MakerDAO provides one of the most active governance experiences across the crypto sector. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">As the community prepares for complete decentralization, these are the key components for creating a self-sustaining MakerDAO:<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/BgrvGUvci2\">https:\/\/t.co\/BgrvGUvci2<\/a><\/p>\n<p>\u2014 Maker (@MakerDAO) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MakerDAO\/status\/1246170537744674818?ref_src=twsrc%5Etfw\">April 3, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Holding MKR is required in order to participate in the governance of the protocol and the increasing number of governance proposals to vote on has led to a higher demand for MKR, pushing its price higher. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Demand_for_DAI_boosts_Maker_price\"><\/span>Demand for DAI boosts Maker price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As previously mentioned, one of the primary tasks of MakerDAO is to govern the DAI stablecoin, which has seen significant growth in its total supply in 2021 as the algorithmically controlled stablecoin became better at maintaining its peg to the U.S. dollar. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/8c6fbb5f-23e8-4b0f-bf98-c1fc57e6f897.png\"><figcaption style=\"text-align: center;\"><em>DAI supply vs. price. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmetrics.io\/\"><em>Coin Metrics<\/em><\/a><\/figcaption><\/figure>\n<p>The growth in the supply of DAI is in part due to its use across a number of DeFi protocols including AAVE, Compound (COMP) and Cream Finance (CREAM) as the go-to option for a decentralized stablecoin. <\/p>\n<p>New DAI are created by locking collateral like Ethereum (ETH) or ChainLink (LINK) into a MakerDAO vault and generating DAI against it. <\/p>\n<p>Due to this mechanism, the rising supply of DAI has coincided with a surge in the total value locked (TVL) in the Maker protocol which has made the project the second-ranked DeFi protocol behind Compound which has a $9.28 billion TV. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/e03a036f-caa6-4f58-9840-a87fe86e52ee.png\"><figcaption style=\"text-align: center;\"><em>Total value locked on MakerDAO. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defillama.com\/protocol\/makerdao\"><em>Defi Llama<\/em><\/a><\/figcaption><\/figure>\n<p>As the TVL on MakerDAO steadily climbed alongside the rising supply of DAI, fundamental indicators including increases in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> activity began signalling an <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaching price move. <\/p>\n<p>VORTECS\u2122 data from Cointelegraph Markets Pro began to detect a bullish outlook for MKR on April 13, prior to the recent price rise. <\/p>\n<p>The VORTECS\u2122 Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/07fd0269-8f5d-4241-a286-ae080a6f23cd.png\"><figcaption style=\"text-align: center;\"><em>VORTECS\u2122 Score (green) vs. MKR price. Source: <\/em><em>Cointelegraph Markets Pro<\/em><\/figcaption><\/figure>\n<p>As seen in the chart above, the VORTECS\u2122 Score for MKR climbed into the green on April 12 and reached a high of 80 on April 13, around 31 hours before the price rallied 65%. <\/p>\n<p>With altcoins now on the move again and the DeFi sector heating up as evidenced by rising TVL across the ecosystem, MakerDAO could rally further as it is the go-to choice for investors looking to interact with Ethereum network-based DeFi protocols.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/shift-toward-full-decentralization-pushes-maker-mkr-price-above-4k\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Shift toward full decentralization pushes Maker (MKR) price above $4K &#8221; Stablecoins have become a significant foundational piece for the cryptocurrency sector because they serve as a deeply liquid base pair for most assets and also offer investors a secure place to capture gains. Data also shows that stablecoins play a significant role in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":228122,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvZjc2ZDdlMDktNDk2ZC00OTAxLThhMTItYmY3MjQ2M2U4NGY3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74894,74863,74860,76701,74868,74891,77655,76700,75493,73785],"class_list":["post-228121","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-blockchain","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-dai","tag-defi","tag-ethereum","tag-maker","tag-makerdao","tag-stablecoin","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/228121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=228121"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/228121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/228122"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=228121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=228121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=228121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}