Maker (MKR) is the 22nd most valued cryptocurrency. It has been on a relentless run as well. Today as well, it is up by 16%. Many of the investors are trying to figure out what is the cause behind such a run. We look into the details to find more.
Why is Maker (MKR) up again by 16% today?
At the same point in time, investors, as well as traders, are also trying to figure out the cause behind the rise of maker (MKR).
Earlier this month, there was also news that Andreessen Horowitz has backed maker (MKR) by investing $ 15 million. He has bought 6% of the overall tokens in existence. Also, he got the discount of approximately 25% during this transaction. The funding will be done over a period of 3 years.
On the other hand, since the rally seems to be overstressed, it is a good idea to be cautious of this cryptocurrency. Unless and until there are no other fundamental news, it would be a good idea to avoid this cryptocurrency for now. Only when you are able to do so, you can be sure that you will not be caught on the wrong foot when it retraces some of those gains as well.
One thing which is for sure is that time and again, it is consistently rising and creating newer highs. Once the momentum subsides, there will be an erosion of value as well. The volumes of the cryptocurrency have not increased by such an amount that it might witness a consistent rally in the coming few weeks as well. In such a case, it might be a very risky proposition to buy it at these levels. The erosion of value can be pretty significant from these levels.