One thing we all like to do is speculate on the price of your favorite cryptocurrency. Today, we’ll have a look at Maker, one of the projects with a more technical back-end supported by and created by the Ethereum community. The Maker price has been relatively high in comparison to other projects and has had a strong position in the top-100 projects on Coinmarketcap. What is the reason behind this and is it smart to buy Maker right now, or should we wait for a better moment to invest?
What is Maker (MKR)?
Let’s start off with a description of the Maker project. Maker is a smart contract platform, running on the Ethereum blockchain, that backs and stabilizes the price of the DAI stablecoin. This is done with the help of a dynamic system that’s consisting on ‘Collateralized Debt Positions’ (CDP), autonomous feedback mechanisms, and appropriately incentivized external actors. The MKR token comes into function as part of the mechanism that stimulates keeping the price of the DAI stablecoin as close as possible to 1 US dollar. Besides that, the MKR token is used to pay fees on the Maker network and it earns the holder voting power on the network.
The thing here is, where most other Stablecoins are created by a centralized party, the DAI stablecoin is completely decentralized. There’s no single party in control of printing more DAI tokens or revoking coins whatsoever. No Tether scenarios are possible here. The stablecoin is used to strive for true decentralization and true adoption of Blockchain technology. Depositing the stablecoin earns the holder the possibility to gain interest on their holdings and by that, generate more wealth by simply holding their DAI tokens. The entire system behind this token is impressive and as mentioned before, the focus is remaining decentralized. To maintain this, every possible scenario is thought about, voted for and acted upon.
Some impressive numbers to go by:
- More than 1% of the total Ethereum supply is locked in the Maker system to generate DAI
- There are more than 3,500 active addresses holding DAI
- There have been more than 50 publicly available Governance & Risk Meetings between the community behind Maker
- The return on investment for Maker is 2247,57%
Maker (MKR) Price Prediction 2018
This is probably the project that people have been speculating the least about. After its launch at the end of 2017, the price went steadily up and saw some explosive growth even. After only a couple of days, the price went from just a couple of dollars to more than 1,000 US Dollars. This was of course during the bullrun, but even at the lowest point in the market, it managed to remain above $400 dollars. The project does not seem affected too much by the surrounding market conditions, not even the recent jumps and dumps that Bitcoin has been experiencing. As we have seen the past couple of months, with each spike that Bitcoin goes trough, most altcoins suffer. It has even come to the point that most alts have seen the all-time lows since their introduction to the market.
For Maker, the all-time low was somewhere around 22 dollars. Thing is, after it jumped up above 300 dollars a coin, the price has not seen lower numbers than that. It has been consistently performing well. The thing here is, it has been as consistent that it might be a project that’s hard to trade. With most projects attracting people for their low prices, Maker is relatively expensive. Those not aware of looking at circulating supply, total supply and the overall metrics of a coin, will simply prefer buying a coin that’s worth $0.001 USD than Maker that’s currently at $518,78 USD. This is simply proving how young this market is and how far we still have to go. What the future holds for us is one big question, but can we speculate a little of the future for Maker?
Maker (MKR) Price Prediction 2020
The third year that is to come for Maker, 2020, will be another year of proving their plans. If you take a look at the roadmap, for example, it looks different than you might be used from other projects. Within these most popular roadmaps, we’ll see things like the release of a mainnet, the release of a product, the testversion of X or a system upgrade to Y, but MakerDAO is doing this a little different. Their roadmap includes several options, several possibilities, and several question marks basically. These include the following;
- Proposal for the Initial DSR Values
- Poll to Ratify the Oracle Team
- Poll for the Long-term Collateral Asset Priority List
- Request for Comments Week
- Poll to Establish the Initial DSR Values
With all these incredibly decentralized and in a sense, flat, milestones on the roadmap, it’s hard to base any predictions on these factors. Whenever there’s a build-up towards the release of a mainnet or anything in that matter, the good old ‘Buy the rumor, sell the news’ works perfectly. However, with this mechanism for a roadmap, it’s harder to tell. When searching for the predictions of Technical Analysts there are some targets that are being called. The most popular prediction is calling for the USD price of Maker to reach around $1000 max by the end of 2019, further ahead, the price could reach way more than that.
Maker (MKR) Price Prediction 2021
One year ahead, the expectations are that the entire market as a whole has grown substantially. That being said, it’s assumable that the number of people utilizing the DAI stablecoin, thereby the Maker token will grow accordingly. The only thing that’s hard to tell is how the price will react to this matter. Is it as simple as; the more people utilizing the network, the higher the price? That’s not how it went for Bitcoin. The hashrate and amount of transactions have been steadily increasing over the past years, yet the price has been lower than it has been before. One thing that could drastically increase the price for the MKR token could be the release of Multi-Collateral DAI. The point now is that it all revolves around the Ethereum Blockchain, what if this stablecoin could spread across multiple blockchains? This would mean an increase in stability for the DAI token, an increase in decentralization for the network as a whole and it would make the network simply really hard to take down.
With this being a goal for the project, it means they are ambitious and aiming for the world. The moment they achieve this, it’s safe to say that there’s a bright future ahead. What the price will do in this case is hard to tell. The predictions that are being published regarding the Maker token, which are not that many, are calling for prices in the range of $1000 and $2000. From an investment stand, it’s not that bad. That would mean an increase of 2 or even 4 times the current value in a little over two years. Whenever you look at it from a cryptocurrency investorsэ perspective, however, it’s not that spectacular. We have seen projects do these kinds of flips in weeks, if not days. Thing is, a project like Maker is trustworthy and have been proving to be a good investment the moment they entered the market. Are we going for safe and steady or risky and rocky here?
Maker (MKR) Price Prediction 2025
Telling the future is impossible. People have earned tons of money by pretending to have the ability to predict the future, yet no one actually can. Anyone can make a prediction but the actual reality might be far off. However, the use of algorithms creates the possibility to in some way, predict the future. Some of these indicators that are based on historical data can be seen below.
- If Maker has the average YoY growth that the Internet went through by amount of users (in its adoption phase 1995 / march 2017 = $2,374.66
- If Maker has the average YoY growth that Facebook went through (in its adoption phase 2004 / 2016) = $61,117.41
- If Maker has the average YoY growth that the Mobile Phone went through (in its adoption phase 1993 / 2013) = $2,256.87
Look at these numbers and tell me which tech-sector you would love to see Maker copying. It’d be hard to compete with a company like Facebook, yet it would not be the first company to go through a cycle like that. The current companies that are huge, especially in the tech-sector, started at a really low stock-value and are now worth millions, if not billions. Who knows what the future might bring. In general, the future for Maker as a project is looking extremely bright. The road up till the point they are now has been a steady way up with things seeming to go their way. If they manage to keep this up, we might just see the MKR token creeping up the list of tokens higher than their current position. Time will tell.