Maker Price Analysis: MKR/USD rises over 40% smashed through 500.00 as Coinbase confirm listing
|- MKR is one of the outperformers on Friday rising 42.33%.
Maker who are a Ethereum-based DAO, tore higher after Coinbase Pro revealed that it would be listing the token on its retail platform on 8th June.
Coinbase is not the biggest exchange in the market, but its reputation and popularity play a big role in the massive price jumps that cryptos go through when added to this platform.
What is Maker?
Maker is a decentralized autonomous organization on the Ethereum blockchain. Their objective is to minimise the price volatility of its own stablecoin Dai, against the U.S. Dollar. Although they try and make less volatile. Maker is a utility token and the price increases with the usage of the Dai and itself is quite choppy.
Maker holders are allowed to vote for the risk management and business logic of the Maker system. MKR coins are not able to be mined, but they can be purchased on the Bibox exchange. Maker operates on the principle of margin trading. Dai tokens are said to be secured by CDP-collateral for debt obligations, which are sent to a smart contract and are a platform for margin trading. This is a great framework that allows developers to provide affordable prices, as well as guarantee a high level of security.
Looking at the daily chart now, the price has spiked through the 200 period Simple Moving Average and just printed above the psychological 500 level. The 700 level seems to be the major milestone and only time will tell if the bulls have enough power to test that level.
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