Central banks around the world are gunning ahead at a go of making their own digital currencies, or CBDCs, and as so, we can imagine that they'll take a lot of inspiration from the massive growth and popularity of stablecoins in the past few years. We here in crypto land have enjoyed the coming of the stablecoin as a universal currency that is controlled neither by any central authority nor is it confined to a set of borders. It's for that reason why we're discussing our Maker price prediction.
While it's not a stablecoin in itself, Maker (or MKR) is a powerful governance tool for MakerDAO, which is responsible for the decentralized management of one of the world's most widely-used stablecoins, Dai. Used as a currency in everything from trading, borrowing cash, and earning yearly interest, Dai has emerged as one of the top stablecoins. Practically tied to Dai's success, you can imagine then that our Maker price prediction will have some interesting tales to tell.
Maker (MKR) Historical Price Analysis
The MakerDAO, as the name suggests, is a ‘decentralized autonomous organization'. It means that its entire ecosystem management relies on a decentralized community for making decisions, such as proposing new updates or voting on future plans. MakerDAO has two native cryptocurrencies; the Dai stablecoin as its main bread and butter and Maker (MKR) as a tool with which users are able to take part in the on-chain DAO. As such, MKR tokens are seen as voting shares.
MakerDAO's entire protocol, therefore, is governed by MKR token holders, where one MKR is equal to one vote. Not only do they manage day-to-day operations, but they also play a pivotal role in implementing new changes or optimizing the protocol as a whole, such as revamping the collateralized debt ratio to mint new Dai stablecoins, oracle feeds for Dai pricing data, readjusting the Dai savings rate, allocating more funds ensuring the stability of the network, and so on.
Knowing all this, it's no wonder then why MakerDAO's namesake Maker (MKR) tokens have risen significantly in value, especially following the DeFi (decentralized finance) boom since late 2020 and early 2021, where a huge spike in price can be seen up until this Maker price prediction. Since bottoming out at its all-time lows of $21.06 on January 30th, 2017, Maker's MKR cryptocurrencies have gone up by leaps and bounds to an all-time high of $4,943.66, recorded on April 22nd, 2021.
Current Price, Market Cap, and Supply
At the time of writing this Maker price prediction guide (May 5th, 2021), the price for one of Maker's MKR tokens is around $4,246.24. If we compare that with its historical prices, today's value marks a gigantic 20,062.77% gain from its all-time lows and just a hair at 14.11% under its all-time highs. With this current momentum, it's very likely that we'll be seeing Maker's MKR tokens continue their soar far passed their previous ATH, which we'll get into in our Maker price prediction.
As of right now, the price of Maker's MKR tokens has given it an overall market capitalization of around $4,226,021,644, which makes MKR the 37th-most valuable cryptocurrency on the market. This is on top of a circulating supply of just 995,239 MKR, where there is a current supply cap of 1,005,577 MKR. However, we shall soon learn that this supply cap is not fixed, where Maker practices a very dynamic approach to maintaining its demand and supply tokenomics.
Maker Price Prediction Future Forecast (MKR)
For our Maker price prediction, we'll be using a set of algorithmic models to see where we're going to land price-wise in the following weeks, months, and years with MKR tokens. Understandably, a computer can only do so much by calculating concurrent pricing data and technical metrics. While it's no crystal ball that'll tell us exactly where the peaks and troughs are at with MKR, at least it's better than nothing. Even looking beyond just the charts, Maker still has very good fundamentals.
Organically speaking, there are plenty of good reasons to be bullish aside from rosy graphs and tables that our algorithms have spat out. For one thing, decentralized finance is continuing to grow at exponential speeds. More people around the world are beginning to realize that they can gain and earn a lot more from decentralized alternatives to regular banks. It's more accessible and equitable for all. Most DeFi services and platforms today are built on the Ethereum blockchain.
Also built on Ethereum is the Maker Protocol, meaning that both Dai stablecoins and MKR tokens have a lot of exposure to the burgeoning DeFi sector, with most of the $65+ billion in total value locked being native to Ethereum. Evidently, most of the world's many DeFi protocols, from high interest-yielding accounts, decentralized exchanges to lending and borrowing platforms, rely on stablecoins such as Dai for collateral. When Dai rises in adoption, so will MKR in price.
Maker Price Prediction 2021
We can expect that the decentralized finance sector will continue to prosper, following monstrous growth since 2020 alone, when only single-digit billions were locked inside of decentralized finance protocols. As one of the top DeFi juggernauts, MakerDAO is expected to continually see adoption for its Dai stablecoin and MKR governance tokens. They've even expanded into bringing DeFi to the real world by using $38,000 worth of Dai stablecoins to finance a mortgage for a house.
Maker Price Prediction 2022
By the end of 2021, some of the world's most respected financial institutions are going to look into DeFi with keen interest. Although central banks worldwide are ramping up their launch of CBDCs, stablecoins such as Dai will very likely be widely used within both enthusiastic and mainstream circles for quite some time. As Maker rises in dominance as the DAO managing Dai, we'll be seeing a lot more people keen to join up its on-chain governance and thus a growing interest to hold MKR tokens.
Maker Price Prediction 2025
It'll be hard to say what's going to happen in four years' time, but we can be sure that DeFi is by now a multi-trillion dollar industry. MakerDAO, in effect, will see a lot of changes coming along by then. Thus far in our Maker price prediction, they're expanding their collateral assets so that even non-MKR tokens can be used for minting new Dai stablecoins. Including modifications here and there to make its smart contracts more efficient, and MKR may see a lot more price appreciation.
Is Maker a Good Investment?
If you've been keeping a close eye on our Maker price prediction so far, then you can see how the algorithms are flashing green all the way, with the potential to double or triple your gains within just a few short years. Now, it's worth stressing once again that these are merely algorithmic predictions based on the data that we have today. They're very clever predictions, but certainly not 100% accurate. However, we have to look at the increasing acceptance of decentralized finance.
DeFi still has a lot of legs to grow, and with it, users will need a more complex and refined monetary system that is digital-native. Regular cryptocurrencies, therefore, will have to evolve to fill in the gaps that we ordinarily have for unique stores of value. The same way we can equate precious metals with Bitcoin, we need a cryptocurrency equivalent to regular paper (or fiat) currencies. This is where stablecoins come along, and MakerDAO's Dai is one of the most widely used to date.
As more and more people flock towards the use of Dai, it will inevitably lead to a rise in MKR. Besides the fact that taking part in Maker's DAO is a lucrative way to actively govern an entire monetary system, we also have to take a look at MKR's tokenomics for our Maker price prediction. MKR is based on a ‘mint and burn' economic model, whereby Maker's MKR tokens are used as collateral to mint new Dai stablecoins and are subsequently burned from circulation.
However, new MKR tokens may be created if there's a shortfall in Dai's price. Since Dai is pegged to be worth $1 at all times, there needs to be a fine balancing act to keep this in check. Fresh MKR tokens can be raised to balance out Dai's price, thus increasing its supply. While this dynamic supply model doesn't give Maker's MKR a definite deflationary pattern, the fact that MKR's total supply hasn't gained much in the past few years of Dai's rapid growth is telling that it will continue to be scarce.
How to Buy Maker's MKR Tokens
As one of the most popular cryptocurrencies on the market today, Maker's MKR tokens are quite easy to find if you're planning to get your hands on them. You could always use sites like CoinMarketCap or CoinGecko to find a full and comprehensive list of all the exchanges that have MKR tokens for sale. But in short, MKR can be found in a huge number of both centralized and decentralized exchanges, such as Binance, Coinbase, Huobi, Uniswap, FTX, SushiSwap, and more.
If you want a quick way to buy MKR, you can always use Changelly!
Maker Price Prediction – Conclusion
In finishing off our Maker price prediction, we're realizing now how hard it is to avoid talking about DeFi. Many people truly believe that it is a natural evolution of the same financial system that's been around us for centuries now. Just imagine having a bank that the average Joe and Jane can control, where it promises to allow easy access and brings equitable value for every single person. That is the sort of future that we want, and MakerDAO is placed right in the middle of it all.
Even Citibank, one of the world's largest banks, couldn't stop talking about MakerDAO. DeFi needs a stable, reliable, and predictable decentralized monetary system of its own. MakerDAO's Dai offers just that, as an early pioneer being interconnected with more than 400 services and apps which support Dai. While that is impressive enough, just imagine how valuable MKR, the token that essentially controls Dai, truly is. Our Maker price prediction here shows that you, too, can be a central banker with countless others and make a huge killing off of it.