In this guide, we will express our and the market’s opinion on the future of MKR as we discuss manufacturers’ price forecasts for 2023 and beyond.
Keep in mind that you should take this and any other forecast with a grain of salt since predicting anything is a thankless task, let alone predicting the future of a new highly volatile financial asset like Maker.
Now, let’s get into it.
Before we delve into the Maker price prediction and answer the questions whether MKR is a good investment or not, why MKR will succeed or fail, or why the price of the Maker will rise or fall, let’s quickly take a look at what MKR is and its history to date.
Table of Contents:
What is MKR Maker
Maker
(MKR) is the primary utility and governance token for the decentralized lending platform, Maker. Maker is an Ethereum-based decentralized autonomous organization (DAO) that allows anyone to lend and borrow cryptocurrency without credit checks. The network combines advanced smart contracts with a uniquely anchored stablecoin to accomplish this task.
Dai (or DAI) is a decentralized, unbiased and collateralized stablecoin pegged to the US dollar. This may sound complicated, but in essence what it means is that it is a cryptocurrency whose price roughly follows the value of the dollar, without the need for a central authority.
Dai is
unbiased because it is not run by a private company, like other stablecoins like USDT, and is collateralized because the new Dai can only be minted by a Maker Protocol user who deposits an appropriate amount of other cryptocurrencies into a smart contract to back up the new DAI minted. Dai holders can also use the Maker Protocol to earn interest on their stablecoins, with the amount determined by the Dai Savings Rate.
What is MKR token
MKR is a token on the Ethereum blockchain (like the rest of the Maker ecosystem) that has governance rights over Maker smart contracts. For example, the number used in the above examples (the CDP collateralization rate) is set by a vote of MKR holders. In exchange for regulating the system, MKR holders are rewarded with commissions.
There is, however, a problem with being an MKR holder. They function as the buyer of last resort. If the guarantees in the system are not sufficient to cover the amount of existing Dai, MKR is created and sold on the open market in order to collect the additional guarantees. This provides a strong incentive for MKR holders to responsibly adjust the parameters by which CDPs can create Dai, as it will ultimately be their money on the line in case the system fails, not Dai holders. I could write a lot more about the mechanics and role of MKR, but that’s a topic for a different post.
MKR Price Prediction For the next 90 days
The entire cryptocurrency world is on the verge of complete collapse. Bitcoin fell 75% from its all-time high amid broader market declines caused by furious inflation and the US Fed’s rate hikes.
When you add the most recent collapses of huge industry players (FTX, Celsius, Moon etc.) into the equation, the horizon is murky and there will be more blood on the streets of the crypto city.
Investors are selling risky assets and moving to more stable markets. Crypto is still perceived as a very risky game and therefore sell off.
Our algo still sees some green in 2023, especially in the second half of the year. This is reflected in our forecast for 2023.
Right now, Bitcoin needs to find a bottom before we can move in the opposite direction and reverse the trend.
Once Bitcoin settles into the new price range, altcoins will start doing the same – we’ve seen this scenario dozens of times in distant and more recent history.
Our price forecasting model is bearish for the next 90 days with a hint of a bull market straddling quarters from Q1 to Q2. We expect whales and other larger players in the market to finish filling their bags around that time, which will cause a typical and sudden crypto spike.
The fundamentals we evaluate are teams, tokenomics, use case, community, marketing efforts, liquidity and availability of exchange, hype and speculative potential, and some other proprietary factors developed in our crypto lab. Maker Price Prediction 2023
Our forecast model calls for a temporary shift to a bear market in early 2023 before moving to another lead in Q3 and Q4 of 2023.
MKR Price Prediction 2025 – 2030 – 2040
Our forecast model sees MKR reaching new highs in 2025:
$ 4371.79
The MKR price in 2030 and 2040 is expected to be a couple of orders of magnitude higher than our 2025 forecast.
