Maker (MKR) Price Analysis: Will Increase In Stability Fees Of MKR Create An Impact On Its Price?
Maker is a smart contract platform lying on Ethereum blockchain. It stabilizes the value of DAI (stablecoin) via a dynamic process called Collateralized Debt Positions (CDP). On the basis of the price fluctuations of DAI, MKR tokens are either created or destroyed. Their developers try to keep the value of DAI as close to $1. It is a part of a fully inspectable system of ETH blockchain.
Current status of MKR
MKR is currently getting traded at USD 567.02 (UTC time 03:37). With a market cap of USD 567,019,918 and a circulating supply of 1,000,000 MKR, it is the 19th largest cryptocurrency in the crypto sphere.
Price analysis of MKR
The above chart shows that MKR is currently getting traded at 567.91 USD or 0.10447700 BTC (UTC time 03:39). Its present market cap is getting traded at 567,908,421 USD with 2,306,644 USD as its 24h volume. The same chart shows that approx. One month earlier, MKR had a trading value of 733.14 USD. So, within this period, the value of MKR has been decreased by -22.53%.
Future price predictions of MKR
There was another vote by The Maker Foundation Interim Risk Team (MFIRT) to raise the stability fee of DAI by 3% to 14%. This fee went on a hike by only 0.5% till September 2018, and it hiked up to 11.5% in just 5 days recently. There can be two reasons for urging to increase the stability value of DAI. These can be either that CDP owners are not bothered and they are clueless regarding paying excessive interest rates forcefully, or, they are just not getting what is happening in this system. The far more surprising fact is that it hiked by 3.5% just a month ago and this vote happened so soon. So, there are high confusions that are currently prevailing in the DAI systems, and it’s pretty clear that the increases in prices are not working as expected. We will definitely not suggest investing in this as of now, and it is our belief, that it can even deter to as low as $200 if this confusion persists.
Conclusion
MKR is in a highly confused state, and it is very uncertain to predict its price due to its own reasons as well as increased volatility of the market. It is definitely not worth investing in it at present.
