MakerDAO’s MKR surges by 30% after the recent vote

MakerDAO’s MKR surges by 30% after the recent vote
Written by:
Ali Raza
10th June, 10:24
  • MakerDAO (MKR) recently saw a 30% surge after a new vote in favor of using real-world assets for DAI minting.
  • Before the vote, users could create new DAI only by locking away a certain amount of one of four cryptos.
  • The vote will allow users to tokenize real-world assets and use these tokens as collateral.

MakerDAO (MKR) recently saw a significant rally that took its price up by 30% in less than 24 hours. The price movement even caused a new high on the coin’s YTD chart on plenty of exchanges, even breaching $720 high on some platforms.

The second major spike in two weeks

The new rally comes only a few weeks after the late May spike, which was started by MKR’s second Coinbase Pro listing. This event caused the coin to spike up by 45% at the time. Now, thanks to the new one, the price has seen 100% gains in only two weeks, which is certainly a massive improvement in MKR’s performance.

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MKR also grew against Bitcoin, finally managing to spike up to a local top of 0.076 BTC. However, it was not long before it retraced to 0.060 BTC. At the moment, it is trying to create support for itself at 0.070 BTC, although it still remains to be seen whether this move will be successful or not.

Why did MKR grow?

As mentioned, MakerDAO grew back in May due to its second listing on Coinbase Pro. The coin was previously removed after it failed to attract liquidity. However, since the growth of DeFi over the last several months, it started seeing a lot more activity, which caused Coinbase to return it.

As for the current surge, it came after a community vote which showed huge amounts of support for supporting non-crypto-native assets as collateral. This is, of course, in the context of creating new DAI.

Right now, MKR users can choose to lock up several different coins when they wish to create new DAI. That includes Ether (ETH), Wrapped Bitcoin (wBTC), USD Coin (USDC), or Basic Attention Token (BAT).

The vote aimed to change that, and the voters showed that they are interested in seeing real-world assets tokenized and locked up in order to issue DAI. The vote shows strong support for a protocol developed by Centrifuge, that will allow users to perform tokenization as ERC-20 based securities.

The vote also expressed a lot of support for the 0x (ZRX) project, as well as tBTC, MANA, and Dai Liquidity Token.

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