Maker's MKR Crypto Outperforms in February with 37% Gains

The ethereum-based token maker is outperforming the broader markets with a 37 percent gain so far in February.

Ranked 16th by market capitalization on CoinMarketCap, 1 MKR was valued at 4.6 ETH on Feb. 14 - the highest level since Oct. 8 - and was last valued at 4.37 ETH. The pullback is likely associated with profit-taking following a jump to 129-day highs.

MakerDAO is a smart contract platform on the ethereum blockchain, backing the value of DAI - it's native stablecoin, which is backed by ether and is soft-pegged to 1 USD - through a system of Collateralized Debt Positions.

This loan payment system uses ethereum's ether token as collateral, necessary for the governance of DAI throughout the Maker ecosystem.

Currently down 5.39 percent from its recent peak, MKR has still excelled over the month as it continued higher than the previous month's peaks, a sign that the bearish market structure is beginning to falter.

Maker tokens are created or destroyed depending upon certain price fluctuations of the DAI coin in order to keep it as close to $1 USD as possible.

The platform has been incredibly successful throughout the crypto bear market, with about 2 percent of all Ethereum now locked in MakerDAO loans.

45 ETH are locked up in the primary Maker contract, representing roughly 1.87 percent of all 104,862,328.

For every DAI created, there is at least $2 to $3 worth of ETH stored in CDP. As a result, when ETH's price drops, more of that cryptocurrency needs to be locked up in order to keep DAI collateralized.

MKR tokens are also used to pay transaction fees on the Maker system and provide holders with voting rights within Maker's 'continuous approval voting system'.