Maker (MKR) Surges 33% Amid Market Downturn
As reported by IntoTheBlock, Maker's MKR has spiked 33% as the entire crypto market faced a downturn. Maker (MKR) is the governance token of MakerDAO and Maker Protocol that allows users to issue and manage the DAI stablecoin.
While the market has been under immense selling pressure over the past 3 days, @MakerDAO token $MKR rose by 33% over the past 24 hours. — IntoTheBlock (@intotheblock) May 11, 2022
Maker's MKR saw a significant spike of as much as 93% to reach intraday highs of $2,284 on May 11 as MKR token and DAI stablecoin benefited from the precipitous fall of Terra's UST stablecoin, which slipped to lows of $0.26 earlier on Wednesday.
According to CoinMarketCap data, MKR currently trades for $1,435, demonstrating a price increase of 12% in the last 24 hours, having trimmed off some of the earlier gains. As Terra UST continues to slip, MKR, the cryptocurrency that fuels the creation of UST's largest competitor, DAI, is surging in response.
UST and DAI have shown an inverse correlation over time. Due to the fact that DAI is currently the safer investment of the two competitors, MKR has been gaining in popularity during the present market downturn.
While UST has experienced volatility, falling from the $1 peg to lows of $0.26, DAI has remained quite steady. MKR is seeing a climb in difficult times as LUNA continues to fall, as some investors may take this opportunity to switch over.
While the usefulness of measures to re-peg UST currently remain uncertain, Do Kwon issued a new statement to the Terra community, stating recovery plans. He stated, "Before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before UST can start to repeg. There is no way around it. We propose several remedial measures to aid the peg mechanism to absorb supply."
At the time of publication, Terra's LUNA is trading near $0.83 amid a dramatic price crash.Source