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Home » Cryptocurrency MakerDAO has tripled in price so far this year

Cryptocurrency MakerDAO has tripled in price so far this year

Important facts:
  • MakerDAO is preparing to implement the Spark protocol on the Ethereum rollup ZKSync.

  • The organization also plans to expand its products outside of Ethereum.

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MKR, MakerDAO’s governance token, had a bullish 2023. The price almost tripled during this period.

January 1st, MKR was priced at $512 and is currently trading at $1,436This represents an increase of 188% in nine months. The asset has a market capitalization of $1.4 billion.

In the following graphic from TradingView You can see the token price increase in 2023.

MakerDAO price between January and so far in September this year. Source: TradingView.

MakerDAO is a decentralized autonomous organization (DAO) that manages the DAI stablecoin issuance protocol on Ethereum. Those who own its MKR token have the opportunity to make suggestions for its future and vote for its approval or not.

Exactly the MakerDAO community, has made several decisions that have driven up the price of its MKR token in these nine months.

For example, last June it was decided to limit the amount of USD coins (USDC) that MakerDAO can deposit on the Coinbase exchange. USDC is a stablecoin and is used as one of the collaterals that support the price of DAI. This increased the price of MKR at the time, as CriptoNoticias reported.

Then, in July, a proposal was presented to the community that would allow MakerDAO to be expanded outside of Ethereum. The idea is to create a multi-chain future for Sparka decentralized finance (DeFi) lending service for DAI users.

Spark is a DeFi product from MakerDAO launched on Ethereum allows you to provide and borrow DAI, depositing other tokens as security. It is based on an over-collateral lending model, which means users have to provide more collateral than the loan amount.

Spark on ZKSync Era

Most recently, on September 21st, it happened announced from the organization a proposal to implement Spark on the Ethereum rollup, ZKSync Era.

The proposal is based “on the potential that Spark has in zkSync.” Introducing new use cases within the DeFi ecosystem and stimulate greater demand for sDAI (synthetic version of the stablecoin) across all channels,” the organization explained in its discussion forum.

MakerDAO believes that this move marks the beginning of “major network infrastructure upgrades” that they plan to make in the coming months that will “catalyze the growth” of both total value locked (TVL), users and transactions many protocols can will now be introduced,” he assures.

This latest announcement saw the MKR cryptocurrency rise from $1,348 to $1,447 in the last week. This corresponds to an increase of 12% in 7 days.

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