Maker Price Prediction | Is Maker a Good Investment? (2024)

The Maker Protocol, also known as the Multi-Collateral Dai (MCD), is the Ethereum-based blockchain that allows users to issue and manage the DAI stablecoin, pegged to the US dollar. Maker (MKR) serves as a governance token of the Maker Protocol.

Even though the MKR coin was conceived in 2015 and officially launched in December 2017, the crypto started gaining traction at the end of December 2020. From as low as $502 on 8 December 2020 to an all-time high of $6,339.02 on 3 May 2021, the coin gained 1,162%.

After retracing with the 2022 bear market, MKR is beginning to make gains again as it becomes the most used smart contract among Ethereum(ETH) whales

In this article we explore the latest Maker (MKR) coin news and price drivers, which may trigger its price fluctuations, to help you build a plausible Maker crypto price prediction.

What is Maker (MKR)?

MakerDAO, the project behind the MKR cryptocurrency, is a decentralised autonomous organisation created in 2014. MakerDAO aims to provide cheaper and lightning-fast transactions by usingthe Maker Protocol.

As per the MKR whitepaper, “the Maker protocol is one of the largest dApps on the Ethereum blockchain”. The protocol is managed by people who hold its governance token, MKR.

Maker (MKR) is anERC-20 token, running on the Ethereum blockchain. Its governance system calls for executive voting and governance polling, which helps to manage the financial risks of Dai – a Multi-Collateral Dai (MCD) system that allows users to generate DAI stablecoins – to ensure its stability, transparency and efficiency.

The DAI stablecoin is a decentralised, unbiased, collateral-backed cryptocurrency soft-pegged to the US dollar. It is supported on Ethereum and other popular blockchains and functions in asimilarway to traditional money:

• DAIstores valuewithout significant depreciation over time, as it is a stablecoin and is designed to keep value even in a volatile market.

• The DAI stablecoin can be used to sell, purchase, or trade goods or services, making it amedium of exchangelike prevailing currencies.

• Dai has a target price of $1 (ie, 1 DAI = $1), hence a standardised measurement of value used to price goods and services. It currentlyfunctions as a unit of account within the Maker Protocol and some blockchain dApps.

DAI can also be used for inflation protection and savings, in gaming, digital artand e-commerce projects.

According to the project’s whitepaper: “As the world’s first unbiased stablecoin, Dai allows anyone to achieve financial independence, regardless of their location or circ*mstances.”

Maker coinnews and price drivers

The crypto has been under the spotlight since MKR token’s pricesurged above $4,000 for the first timeon 21 April 2021.

That surge came in the aftermath of an executive vote passed by the members of the MakerDAO community to allow an ERC-20 token representing an ownership stake in a pool of real-estate assets as collateral.

The proposal allowed the Tinlake blockchain protocol to serve as a bridge between New Silver, a real-estate loan company, and MakerDAO.

In September 2021, MakerDAOannouncedthe integration of Gelato Network’s G-UNI Uniswap V3 token as collateral within its protocol. The G-UNI/MakerDAO integration could potentially bring higher revenue for MKR holders.

According to the press release: “MakerDAO’s adoption of the G-UNI framework is a substantial development for DeFi, as the Uniswap USDC/DAI pair will effectively become the most liquid across all decentralised exchanges (DEXs).”

More recently, MakerDAO announced in September 2022 that it would be part of Coinbase’s USDC institutional rewards programme.

In exchange for lending 33% of USDC from the platform’s stability module, worth roughly $1.6bn, MakerDAO will receive a yield of 1.5%.

Maker (MKR)price analysis

Launched in 2017 with one million MKR tokens at $24.45, the crypto has come a long way while witnessing several ups and downs. It crossed the $1,000 mark before ending 2017 and continued the upward trend in the initial month of 2018, climbing over $1,500.

The coin hit a high of $1,773.92 on 18 January 2018. However, MKR failed to achieve the prior high and dropped dramatically to $503.57 on 4 April 2018.

During the rest of 2018, 2019 and 2020, the maker token value remained flat according to its price chart, but the coin made a turnaround in 2021. MKR surged to an all-time high of $6,339.02 on 3 May 2021.

The concept that the higher the number of MKR an individual holds, the greater their voting power, helped to boost sentiment. The community rebuilt trust in the token as it gave them the ability to manage the DAI stablecoin. This also drove the value of MKR coins further.

But the MKR was thrust into a bearish market in 2022. It plummeted throughout the year, dropping below the $1,000 barrier in late June.

MKR achieved a high of $747 on 29 September 2022 after confirmation of Coinbase’s instructional rewards programme. It continued climbing into the following month and broke past the psychological $1,000 barrier.

At the time of writingon 18 October 2022, Maker was trading at $1,092, up 10% in the previous seven days and 60% over the past month.

This price rise also follows news that MakerDAO was the most used smart contract by the top 500 ETH whales, according to a whale-tracking Twitteraccount.

MKR all-time performance

Source: CoinMarketCap

Maker price prediction: Targets for 2022, 2025 and 2030

Short-term technical analysis from CoinCodex showed a neutralsentiment for MKR at the time of writing (18 October 2022). There were 21 technical analysis indicators showing bullish signals, while 11 were bearish.

CoinCodex’s Maker price prediction for 2022 predicted that the token’s value could fallto $976.62by 17 November.

Meanwhile, several algorithm-based services shared longer-term Maker coin price predictions as of 18 October 2022.

According to WalletInvestor, the MKR token pricecould have crashed to $96in a year’s time. Its Maker price prediction for 2025 suggested it would closethe year at the $200 mark.

Meanwhile, Gov Capital’s Maker coin price prediction said it would climbto $2,822in a year and $15,573in five years’ time.

DigitalCoinPrice expected a steady climb for Maker, expecting it to average $1,138this year and $2,889 in 2025. Its Maker price prediction for 2030 suggested it could climb to $6,084.

When looking for Maker crypto price predictions, bear in mind that analysts’ and algorithm-based predictions can be wrong. Their MKR price predictions are based on fundamental and technical studies of a cryptocurrency’s past performance. However, past performance is no guarantee of future results.

It’s essential to do your research and always remember your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. You should never invest money that you cannot afford to lose.

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