- The asset’s value has increased by almost 100%.
- The cryptocurrency has joined forces with Centrifuge to conserve assets in DeFi.
MKR coin is a cryptocurrency that belongs to MakerDAO, and it gained popularity only some weeks ago when it presented with a massive bullish movement. From March until the second week of April, the asset has increased by almost 100% of its initial value. MKR was an unknown altcoin until its value increased despite the overall market decline.
This increase in the value of MKR that contradicted the overall crypto ecosystem may be a mirror or a sign that the altcoin became independent. Many doubts have arisen arise from this uptrend that investors can take advantage of while it lasts.
The cryptocurrency has joined forces with Centrifuge to conserve assets in DeFi. With this merger, MKR investors can have loans using MakerDAO as a line of credit. Under this same scheme, Centrifuge users will have credits with DAI for automobiles, real estate, or other projects.
The entire development scheme of MakerDAO was highlighted by Sébastien Derivaux, the company CFO, who noted that, “This is a DeFi that takes the best of finance.”
This reveals good progress, not only for MakerDAO but for all the investors. Additionally, another factor of progress was the announcement earlier in the week by CitiGroup, where it was indicated that MakerDAO was a “decentralized bank.” This was said while pointing out the usefulness of DeFi.
Stability of the upside in MKR
With these movements of MKR in development, it can be understood why it rose in value against a bearish chart. The fall that affected Bitcoin did not affect the altcoin, and this is seen as relevant. Crypto experts wonder if this price hike in MKR is sustainable or sporadic.
This altcoin has a TVL of 9.74 billion dollars, increasing three times the initial value shown at the beginning of the year.
This progress is key for DAI, which will undoubtedly attract new investors if the uptrend continues to manifest itself. According to reviews by Santiment, the coin had an increase in its investments, deposits, and withdrawals in the last few days.
Will MKR’s uptrend continue?
Although the outlook for MKR looks incredible, this uptrend may not hold for long. As indicated by Santiment:
“It is very rare for MakerDAO to reach this level in MVRV. Therefore, its uptrend is likely to be interrupted at any time. It is a dangerous move because it is overrated”.
With these clarifications, MKR is likely already moving towards its highest point, or maybe it already is there and is headed downwards. The rise in the digital asset’s value is seen by the general market as sporadic, which indicates a bad time to invest.