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Maker Token: MKR Price Analysis and Updates

Analyzing various updates and price analysis of the Maker token or MKR Token. Currently, as of 7th October 2018 MRK Token is
Analyzing various updates and price analysis of the Maker token or MKR Token. Currently, as of 7th October 2018 MRK Token is trading at $632.

Analyzing various updates and price analysis of the Maker token or MKR Token

Why have stable coins become the center of attraction?

The advancements in the crypto space are taking place at such pace that, it has become highly challenging to find stability in the market. The vulnerability of losing coins by the investors and other traders by leaving it on the exchange, rendered them to convert their funds each time, into fiat, in order to avoid price fluctuations. This condition was effectively overcome by the inception of stable coins, as the investors simply converted the cryptocurrency funds into the stable coins and their value wouldn’t fluctuate.

Maker tokens exist to support the stability of Dai tokens

The Maker DAO is the original parent company behind the Maker token and also the stable coin Dai. Maker is nothing but a cryptocurrency Blockchain platform which is specialized in the distribution of the Dai tokens and also controls its volatility. The Dai tokens are one of the most reliable forms of stable coins, as all the Dai tokens in circulation currently, are being collateralized by a respective amount of Ether tokens. The investors, as well as the users, can make effective use of the Dai tokens in order to prevent price slippages during various Crypto operations.

History of Maker tokens

The Maker tokens were initiated in the Crypto domain in August 2015, and almost one year later in April 2016, the Maker Blockchain platform was initiated. However, the stable coin was released only in December 2017, which marked a significant achievement in the roadmap of the developmental team.

The incorporation of CDPs

The cryptocurrency blockchain platform incorporates a very interesting mechanism, so as to, stabilize the price of the Dai tokens. The Maker decentralized autonomous organization is better known as Maker DAO runs automatically based on preset smart contracts. The organization makes use of a dynamic system named, Collateralized Debt Positions (CDPs) which considers various external as well as internal factors fluctuating or causing fluctuations in the price of Dai tokens. One can easily generate the Dai tokens, by simply sacrificing some of their Ether. Once the Dai coins are distributed, they can effectively be utilized like any other stable coin in the market.

The redeployment of smart contracts marked a significant event

In December 2017, the Maker community also revealed an updation, regarding both the Maker tokens along with upgrading their Oasis backed smart contract. The smart contract after the redeployment was supporting the new MKR tokens. It is also worth mentioning that the new smart contract was highly secure when compared to its previous versions. More recently, in August 2018, the community unveiled its plans for a multi collateral Dai ecosystem which would indirectly bring stability in the fluctuations of the market. As the token would be backed up, by multiple assets, the risk would be reduced drastically. it would also indirectly help in increasing the liquidity of the Dai tokens.

Understanding the price of the supporting cryptocurrency token which is the Maker token, is very crucial as it plays a key role in the development and maintenance of the entire ecosystem. Below is a detailed price analysis from the month of May 2018.

May

The 24th largest Cryptocurrency token, according to market capitalization, was trading around $1050, during the initial days of the month. However, the Maker token managed to reach its all-time high of that particular month, only after a few days with the price being $1180. The price of the Maker tokens significantly dropped after 10th of May, and by the end of the month, the price was hovering around $750 levels.

June

The price somewhat got consolidated and touched the $840 levels, which was also the all-time high of that particular month. Post which, the price significantly dropped over a few weeks and reached almost $477.

July

No significant fluctuations were observed in this particular month, as the price was consistently trading around $530 with slight fluctuations. even though the all-time high of the particular month was recorded at $670.

August

Once again a significant drop was observed from $590 up to $370. Post which the price was recovered and was around $445.

September

The Bearish pattern once again was repeated where the prices touched the $300 level. The all-time high of this particular month was recorded at a price of $480.

October

Currently, as of 7th October 2018, at reporting time, the price of MRK Token has been trading around $632.

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