We have already covered the growth of Maker (MKR), the Ethereum-based token which dominates this month’s green trend and is with a 37% gain so far in February as the latest digital currency news show.
Ranked 16th right now, 1 MKR was valued at 4.6 ETH a couple of days ago which was the highest level since October 8th. MKR was last valued at 4.37 ETH and the pullback is associated with profit-taking following a jump to 129-day highs.
For those of you who don’t know, MakerDAO is a smart contract platform on the Ethereum blockchain which backs the value of DAI (DAI) which is its native stablecoin that is backed by Ether and is soft-pegged to 1 USD through a system of Collateralized Debt Positions (CDP). The loan payment system uses Ethereum’s ether (ETH) token as collateral, necessary for the governance of DAI throughout the Maker ecosystem.
Even though MKR is now down 5.39% from the peak, it is still with a rise over the month and just a sign that there is a bearish action out there.
Meanwhile, Maker tokens are created or destroyed based on certain price fluctuations of the DAI coin in order to keep it as close to $1 USD as possible.
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