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Why the Maker (MKR) Coin has Been Rallying

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Maker MKR coin

The Maker (MKR) coin came into the market at the tail end of last year.  It’s the token for Maker smart contract platform, and it secures the Dai (DAI) stablecoin. After a long downward trend, Maker (MKR) has seen a recent upswing after two big announcements.

Maker Coin Support From a Giant Investor

A month ago, MKRwas trading around $300.  It’s now pushing to $765.  In just the last 24 hours, it’s risen 21.5%. What happened? For starters, Maker has partnered with the venture capital firm Andreessen Horowitz. Last June, the firm announced the launch of their $300 million cryptocurrency fund, $15 million of which is dedicated to MKR. This means that Andreeseen Horowitz now owns 7% of the currency, so they are hedging their bets on its success.  They also now control 6% voting rights, which could help ensure the token’s reliability.

MKR increased supply by close to 5 million coins in last week, up to around 60 million total.

Payment for a Prediction Market

The number of Maker (MKR) in use of course ties directly to the number of Dai (DAI) transactions.  Another recent announcement may continue to effect Dai (DAI) exchange.

Augur is the platform where you can place bets on just about anything you like. On October 4, they announced that they would begin to support Dai (DAI). Previously, they have only supported payment in Ether (ETH). This recent partnership could attract more people to use the platform.

Growth in Partnership

Augur’s decision, like Andreeseen Horowitz’s has made some waves. Considering there are now many stablecoin to choose from, their choice of Dai (DAI) shows confidence in the currency. Obviously, this partnership doesn’t effect the value of Dai (DAI) but it has surged the value of its utility token, which is Maker (MKR).

Part of Maker’s vision with Dai (DAI) is to help cryptocurrency become less volatile and more accepted into the mainstream. Clearly, some investors are betting on their success, and this recent upswing is a direct result of big name support.

 

 

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