Maker (MKR) Prices Rise on Loom Partnership
Loom Network announced plans to introduce the DAI stablecoin on TRON and Binance Chain blockchains.
Maker (MKR) is one of the big gainers in the recent altcoin rally. MKR added nearly 20% to its price in a week, reaching $540.73. The project is receiving a long-term boost from the expansion of decentralized finance, or DeFi. The DAI stablecoin has circulated through decentralized finance projects, including Compound.
Maker becomes the first third-party project to make use of Loom Network’s cross-chain capabilities. This marks the continued expansion of Maker’s business model through other vectors, namely a variety of blockchains.
“Dai being supported on Tron, Binance Chain, and other major chains means we’re one step closer to creating a multichain DeFi system — with more and more developers using Loom Network to scale their dapps and projects,” commented Luke Zhang, co-founder of Loom Network.
By a rough estimate, Maker carries around $350 million in digital assets, with Ethereum the most common collateral. The collateral is used to issue DAI, of which there are now around 85.9 million coins. The issued assets are more than 385% collateralized. DAI is also being used by newly created derivatives exchange, dy/dx. The dollar-pegged coin is also tradable on multiple crypto exchanges.
Due to the increasing trust and growth of decentralized finance, Maker’s loan fees have been voted down again, to 12.5%. The fees peaked near 20% a few months ago, especially as Ethereum (ETH) market prices looked shakier.
The rise of decentralized finance is seen as optimistic for ETH market prices, pushing them up to a recent peak of $220. Skeptics, however, see the lending schemes as unsustainable. The MKR asset, of which there are just 1 million, is also facing some problems. The Bitinka exchange is showing withdrawal problems for MKR, though luckily it carries a small fraction of the trades. Most MKR is traded on BKEX.
Loom Network (LOOM) continued to trade in its new lowered range, remaining almost without change on the news, at $0.023, and down to 231 Satoshi.