The MakerDAO community, on 23 March, agreed to keep USDC stablecoin as primary backing for its DAI stablecoin. Around 79% voted to keep USDC as DAI collateral, and the remaining favored diversifying the reserves.
USDC is a stablecoin pegged to the United States dollar in a ratio of 1:1. Every USDC in circulation is backed by $1. The Centre consortium issues the stablecoin and has two founding members: Circle and Coinbase, the leading crypto exchange.
In October 2022, Maker bought Treasury bonds for a MIP65 enhancement initiative. With the most recent plan, Maker’s ability to invest in liquid bonds is increased along with the debt ceiling for those investments.
The $750 million made available through the proposal, according to Maker, will be used to purchase U.S. Treasury bonds with maturities evenly distributed over 6 months. This strategy will guarantee that the Treasury bonds mature at a rate of $62.5 million every two weeks.
At the press time, USDC traded at $0.9999 with a 24-hour trading volume of $5,150,344,747. In the past 24 hours, USD Coin’s lowest traded at $0.9987 and highest traded at $1.0002.
USD Coin is ranked 5th in the entire crypto market, with a total market dominance of around 2.95%. USD market capitalization decreased by over 1.30% in the past 24 hours; at press time, it was $33,913,700,038.
According to the leading Total Value Locked data aggregator, MakerDAO has $7.65 Billion.
Maker tokens remained between $660-$675, with low volumes. Since the beginning of March 2023, MKR has hit a high of $985 but cannot sustain over the top.
Moreover, on the charts, the double top pattern forms and bears are ruling and showing supply, resulting in the token price reaching the previous support mark of $650. Recently the volume spike has shown interest in investors trying to break the narrow congestion range.
However, the MKR token lost around 31% in the last 15 trading sessions and is hovering near the lower trendline. If the breaks are below $660, the immediate support of $600 can be tested. On the other hand, if the token breaks above $700, then the token will face the immediate hurdle of $750.
Conclusion
Maker token price shows nominal moves with the rise in volume and taking support on a lower trendline. Moreover, buyers are trying to break the congestion range and register a breakout above $700. While token trades on the lower Bollinger band and tries to sustain the middle band again. If any selloff is below $650, revert the trend to bearish. On the other hand, 20 EMA was placed at $740, which buyers were trying to achieve in near sessions.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/25/makerdao-reconcils-usdc-rejects-primary-collateral-diversification/