MKR/USD was one of the best performers on the cryptocurrency market in the last two days, and the price of this cryptocurrency has advanced from $2423 above $3600 since the beginning of November 2021.
The current price stands at $3236, and if you decide to buy MKR in the upcoming days, you should always use a “stop-loss” order because the risk remains high.
One of the largest dapps on the Ethereum blockchain
The Maker Protocol is one of the largest dapps on the Ethereum blockchain and the first decentralized finance (DeFi) application that has achieved significant adoption.
MKR is a governance token of this protocol which is designed to minimize the price volatility of its own USD-pegged cryptocurrency, DAI.
DAI stablecoin is a decentralized cryptocurrency that you can generate by depositing collateral assets into Maker Vaults within the Maker Protocol. You can also buy DAI from many exchanges and brokers or receive it in the form of payment.
All transactions with DAI are visible on the Ethereum blockchain, and every DAI in circulation is directly backed by excess collateral. With DAI, anybody can realize the advantages of digital money, and there are over 400 apps and services currently that have integrated DAI.
The Maker Protocol is managed by people who hold its governance token, and it is important to say that each MKR token locked in a voting contract represents one vote.
MKR holders also adjust policy for the DAI stablecoin while governance polls establish a soft consensus and measure community sentiment.
Maker Protocol has a high level of security, and it is continuously working on new features, which is very important for its expanding ecosystem. The team of Marker reported:
From the earliest days of Maker, everyone involved worked tirelessly to devise a framework for scientific governance and create an infrastructure for a new generation of open financial services that can be used by anyone, anywhere, anytime.
MKR has exploded since the beginning of November 2021, and this cryptocurrency continues to trade in a bull market. The daily volume of MKR remains high, but the current price appreciation has a less fundamental background.
Bulls in control of MKR
This cryptocurrency has made a big jump in a short period and, if you decide to buy MKR this November, you should consider that the price could also weaken from the current levels.
If bigger investors unexpectedly sell a substantial amount of MKR, it could result in an extreme correction as a small price change could provoke liquidations from traders with high leverage.
MKR is currently trading around the $3230 level, but it would be a strong sell signal if the price falls below $3000 support.
The next price target could be at $2800 or even below; still, if the price jumps again above $3500, we have the open way to $3700.
Summary
The Maker Protocol is one of the largest dapps on the Ethereum blockchain and the first decentralized finance (DeFi) application that has achieved significant adoption. MKR is a governance token of this protocol and one of the best performers on the cryptocurrency market since the beginning of November.
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