How ETH prices affected MKR market cap summary
Market capitalisation, calculated as the product of the total number of coins in circulation and the coin’s current market price, is one of the most important metrics used when comparing the relative size of a cryptocurrency. This analysis aims to discover the relationship between Maker market capitalisation and the assets being collateralised.
In this analysis, we use the daily price data from 20 Nov 2019 onwards, where Maker launches the Multi-Collateral Dai system that allows users to generate Dai by leveraging various types of collateral assets. Among these, WETH takes up the highest value of more than 80%, significantly higher than the proportion of other types of assets. Hence in the following analysis, we will be focusing on the effect of WETH prices on Maker.