Makers MKR Token Surges 30% and Stablecoin DAI Leapfrogs UST

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-The price of Maker’s governance token MKR spiked more than 30% overnight, and its stablecoin DAI also benefited from the continued meltdown of Terra’s UST stablecoin, which slipped as low as $0.30 in the early hours of Wednesday morning.

-MKR currently trades for $1,664 dollars a token, a price increase of a little over 35% in the last 24 hours, according to CoinMarketCap.

-The reason for the price increase is due to the fact that Terra’s algorithmic stablecoin TerraUSD (UST) is in the throes of a dramatic price crash.

-On Tuesday, the Luna Foundation Guard (LFG), a non-profit supporting all things Terra (LUNA), voted to lend $1.5 billion in crypto to protect its native UST’s peg. The effort failed to stem the tide, with UST crashing even harder overnight; at 8:45 AM UTC today it bottomed out at $0.2998.

-The price of LUNA, the currency which Terra burns a dollar’s worth for every new UST minted, is also crashing hard. At its current price of $2.20, LUNA has lost over 90% of its value overnight.

-It currently remains uncertain what measures will be taken to re-peg UST, but Terra CEO Do Kwon addressed a nine-tweet thread for concerned Terra supporters. He wrote: “the only path forward will be to absorb the stablecoin supply that wants to exit before $UST can start to repeg. There is no way around it.”

MakerDAO Logo gID 1 Makers MKR Token Surges 30% and Stablecoin DAI Leapfrogs UST
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