MakerDAO (MKR) appears to be still holding in the $ 1,600 zone four days in a row after declining from a daily high, $ 1,766 on May 13th.
At the time of this writing, MKR is trading at $ 1,610 with a jump of over 6% in 24 hours and over 41% since last week.
The fall in the value of LUNA is in line with the MKR price jump of 72%, from $ 956 to the current price level. At the same time, MKR took a profit as TerraUSD (UST) fell from the value of the US dollar causing crypto investors to switch to DAI stablecoin.
So it is no wonder why the supply of DAI in the market has declined since May 8 even though its trading record in 24 hours has declined by almost 36%.
Three reasons investors should take note of why these two assets are starting to climb the charts:
DAI is strongly tied to the US dollar
This Stablecoin has not lost its value despite the turbulent crypto market.
DAI demand hit an unusually high as the supply of these assets fell to its lowest level throughout the year, hovering at 6.39 billion from a record high in February, 10.38 billion.
Remain relevant for real world use
Maker Vault has been used in meat export financing, making it another use case worth considering.
The use of Vault along with the presence of a decentralized asset financial protocol, Centrifuge allows trade finance provider, ConsolFreight to generate DAIs that are then used to pay for transactions.
At the same time, invoice and export data were generated in the form of non-fungible tokens (NFT) to be kept in records.
Ethereum (ETH) as collateral
Enacted on May 16, ETH has been appointed collateral to Maker’s protocol through staking.
sEth2 (ETH used for staking in StakeWise) allows investors to access funds that will be locked in at a certain time and then used to earn revenue in DeFi.
MakerDAO ranks first based on the highest total locked value (TVL) by DeFi protocol category.
