Stablecoins have become a significant foundational piece for the cryptocurrency sector because they serve as a deeply liquid base pair for most assets and also offer investors a secure place to capture gains. Data also shows that stablecoins play a significant role in functioning as a gateway for capital inflow to the crypto ecosystem.
While the largest stablecoins in the market are currently controlled and issued by centralized entities like Tether or Circle, DAI and its issuer Maker (MKR) is one stablecoin project that keeps with the ethos of decentralization that the cryptocurrency community is founded on.
Data from Cointelegraph Markets and TradingView shows that the price of MKR has increased by almost 100% in the past week, rallying from a low of $2,011 on April 7 to a new all-time high at $4,096 on April 15 on surging trading volume.
MKR/USDT 4-hour chart. Source: TradingView
Momentum for MKR has been on the rise in recent weeks as the ecosystem thanks to a focus on making the protocol fully decentralized and community governed.
Governance has emerged as one of the sought-after features in the 2021 bull market as part of the wider decentralized finance (DeFi) movement, and MakerDAO provides one of the most active governance experiences across the crypto sector.
As the community prepares for complete decentralization, these are the key components for creating a self-sustaining MakerDAO:https://t.co/BgrvGUvci2
— Maker (@MakerDAO) April 3, 2020
Holding MKR is required in order to participate in the governance of the protocol and the increasing number of governance proposals to vote on has led to a higher demand for MKR, pushing its price higher.
Demand for DAI boosts Maker price
As previously mentioned, one of the primary tasks of MakerDAO is to govern the DAI stablecoin, which has seen significant growth in its total supply in 2021 as the algorithmically controlle ...
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