Bitcoin (BTC) currently stands as the biggest cryptocurrency available by market capitalization and widespread adoption. This pioneer cryptocurrency is by no means perfect and many cryptocurrency projects have released superior technology and features to unseat BTC.
Bitcoin clearly enjoys the first mover advantage, seen as the benchmark for all other cryptocurrencies. But, how long will it’s leadership position last is a question that has been asked before and seems more pertinent now. Some sections believe that it may maintain its place as the major store of value while other more interesting projects will gain reckoning for other interesting use cases.
Many others believe, however, that bitcoin will be relegated by promising cryptocurrencies in due time. One of the cryptocurrencies showing some promise is Maker (MKR). The MKR digital token has had an impressive growth in a couple of months.
A Guide to Maker (MKR)
Maker is a cryptocurrency platform on the ethereum blockchain that sells Dai tokens (a stablecoin) and seeks to minimize its volatility. Created in 2015, Maker (MKR) tokens became the first tradeable token on the ethereum network. Unlike the Dai stablecoin which exchanged at the value of one dollar, the MKR is a utility token, governance token and recapitalization resource of the Maker system.
A stablecoin like Dai that doesn’t have huge price fluctuations is necessary for financial markets since it allows for long-term planning. In simple terms, the MKR token is used to keep the Dai stable against the dollar making users confident of the value. It also serves as a governance token, to give users control over the system and ensure a level of transparency lacking in some systems. Users can vote to contribute to the development of the system.
Maker (MKR) Price Watch
When Maker (MKR) peaked close to $1700 in January, it was like announcing to the world that the coin to beat was here. As the month ran down, it began to see major corrections and by early February, it had succumbed to $821. Investors remained undeterred as the coin fluctuated through the first and second going below $500 at some point and above $1100 at another.
However, in recent weeks, MKR seems to have found some footing, hovering between $750 and $1100; currently, it is trading just below 800. With a high-price growth and wide acceptance, MKR is gaining more public attention and no doubt will attract more market activity.
It is with keen interest that observers watch the MKR token, which could well become the defines the maintenance of stable cryptocurrencies in open blockchain.
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.
