MakerDAO Up By 30% After Vote For ‘Real-World’ Loan Collateral

The price of MakerDAO (MKR) has rallied by roughly 30% over the past 24 hours, posting a new year-to-date high above $720 on some exchanges. 

The rally follows a late May spike of up to roughly 45% on the heels of MKR’s second Coinbase Pro listing. The past day’s high saw the price top 100% gains in two weeks.

MKR/USD on Bitfinex: TradingView

When measured against Bitcoin (BTC), the rally saw Maker break above its upper-range for 2020 and spike to a local top of 0.076 BTC, before quickly retracing to 0.060 BTC. MKR is currently trying to establish support at roughly 0.070 BTC.

MKR/USD on Bitfinex

MKR/USD on Bitfinex: TradingView

According to DeFiMarketCap, Maker currently represents nearly one-third of the total $2.4 billion market cap for DeFi tokens. 

Coinbase Pro relists MKR

MKR was removed from Coinbase Pro last year after failing to attract significant liquidity, but the leading U.S.-based cryptocurrency exchange is now betting that the growth of DeFi will drive greater speculation in the markets.

MakerDAO now ranks among the top 24 crypto assets by market cap. It accounts for more than 50.5% of the total amount locked in DeFi with almost $500 million.

Maker supports ‘real-world’ asset collateral

MKR’s latest spike comes amid a community vote showing strong support for supporting non-crypto-native assets as collateral for the creation of DAI. 

Currently, MakerDAO users can lock up Ether (ETH), Wrapped Bitcoin (WBTC), Basic Attention Tokens (BAT), or the stablecoin USD Coin (USDC) to fund DAI loans. 

The vote signaled support for a protocol developed by blockchain startup Centrifuge that would allow “real-world assets” to be tokenized as ERC-20-based securities that can be used as collateral for DAI minting.

The vote also showed positive sentiment toward the DeFi project supporting 0x (ZRX), Decentraland (MANA), Uniwswap’s Dai Liquidity Token, and tBTC.

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