Maker (MKR) – Forecast Summary
|Maker Forecast: H1 2021
Price: $7,000 – $10,000
Price drivers: Safe haven retreat, Crypto market sentiment
|Maker Forecast: 1 Year
Price: $15,000 – $20,000
Price drivers: Tighter monetary policies, Positive risk sentiment, Dai progress
|Maker Forecast: 3 Years
Price: $30,000 – $ 50,000
Price drivers: Dai stablecoin, Crypto market sentiment, Higher bond yields
The Maker (MKR) coin started as an idea in 2015 and was fully introduced in the cryptocurrency market in 2017. It benefited immensely from the positive sentiment in the crypto market at the end of that year, making some major gains as MKR/USD surged from around $250 to $1,750 by January next year. Although it came back down in Q1 of 2018 as did all other cryptocurrencies and it traded in a range between $300 and $700 for three years until the beginning of his year, when the positive sentiment in this market started affecting Maker as well, sending it surging higher, reaching new record levels several times.
MKR reached $5,000 in April this year and remains quite elevated, still looking at the upside, as the crypto mania continues. MKR/USD trades well off the highs at the start of May and the pressure remains bullish, despite it being just a governance token to support the DAI stablecoin on the Maker protocol. But, it seems like all cryptocurrencies have turned into great investing assets and Maker is riding this investing/safe haven status, so the future points to further gains for this crypto.
Recent Changes in the Maker Price
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Factors Affecting Maker-Dai
The Maker network is one of the earliest projects in the decentralized finance (DeFi) world, which makes it follow this industry. The more the DeFi industry grows, the more Maker grows, as does Ethereum. This industry has been booming for the past year, helping cryptocurrencies and in particular the coins which operate in this sector. The sentiment in the cryptocurrency market is always a major factor for all cryptos, with the sentiment in Maker being more bullish than in the rest of the crypto market now.
Maker (MKR) Price Prediction for the Next 5 Years
Dai is a stablecoin and Maker is a supporter for Dai, to keep the value balanced as close to 1:1 with the USD. As of May 2021, DAI is one of the most popular stablecoins (cryptocurrencies whose prices are pegged to the USD or another traditional currency). It is the 35th largest cryptocurrency at over $4.476 billion in market capitalization. Dai’s market cap is obviously close to that of Maker, at $4,770 billion and it has more active addresses than USDT — the largest stablecoin on the market.
What Is Dai?
In order to understand what the Maker token is, first we have to understand what the Dai coin is. This first/main product of the Maker organization is called Dai. Dai is a stablecoin just like USDT, but one which relies completely on the blockchain and its stability unmediated by the legal system or other counterparties. Dai is similar to Tether, but the organization operates in a different way. Stablecoins are coins pegged to a fiat currency or a digital one. Tether and Dai are pegged to the USD to the value of 1:1. But while Tether increases the USD reserves by the same amount of new Tether issues, Maker doesn’t keep the Dai pegged to the USD in the same way. Dai retains its balance relative to the value of the USD via Maker, and that’s where the Maker token comes in.
If you hold other cryptos, for example Ether, and want to own Dai, you have to create it first. You would be to send your ether to a “collateralized debt position” CDP, which is a type of software/smart contract that runs on the Ethereum blockchain, while living within the Maker ecosystem inside this blockchain. If the price of Ether goes up, that wouldn’t be a problem, since it would surpass the…