The governance and utility token from the manufacturer MKR rose to a level that has not been reached since the beginning of 2018
MKR is the digital token for the MakerDAO global financial system and Maker’s credit platform. MKR prices have been rising steadily over the past two days, hitting a high of $ 1,165.11 yesterday (according to CoinGecko). That price number is about $ 103 off its all-time high of $ 1,798.70 in January 2018. Market capitalization has jumped to nearly $ 600 million.
MKR / USD price chart. Source: CoinGecko
The price of the token fell briefly to USD 1010 today but has since recovered. It is currently trading at 1,122.57 and is up 40.3% in the past 24 hours. The Ethereum-based governance token has gained 20.8% in the past seven days. Delphi Digital’s Liberman issued a statement for the rally, which was due to the increased supply of MakerDAO’s stablecoin Dai.
Several cryptoanalysts also believe the price hike was an expected but poor result of the decentralized finance (DeFi) boom. The DeFi sector has shown signs of recovery in the past few days as it appears to be growing in popularity.
The sector has maintained an upward momentum since the start of the year, with the total value set in DeFi heading towards $ 22.5 billion. Most of the DeFi projects in the top 20 list today have seen daily gains with the exception of InstaDApp and Flexa. According to DeFi-Puls, the total value locked at the time of writing is $ 22.01 billion.
Messari’s lead analyst Ryan Watkins pointed to a variance in the correlation between MKR price movements and DeFi growth. During the DeFi boom last summer, the price of the token had remained constant. This is not the case this year as the demand for the token has increased. Watkins attributed this change to an improvement in the token’s fundamentals.
Watkins also argued that the rebound in MKR token price may have been triggered by the recent uptrend in the crypto market.
“The recent excitement in the industry provided the recipe for this [the token’s price] can finally be recognized“, he explained.