DeFi is unquestionably the biggest thing in the crypto space at the moment and one of the most intriguing projects is Maker. Whereas there are numerous DeFi tokens that offer similar DeFi features, MakerDAO aims to stabilise the crypto industry to boost uptake and drive widespread cryptocurrency adoption.
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The keyword for Maker is stability. The project ecosystem is built around its native stable coin, DAI, which is pegged to the US dollar. What makes MakerDAO special is that it offers users complete freedom by providing decentralised leverage that is backed by fiat currency via ERC-20 smart contracts.
Of course, there are plenty of competitors in the DeFi space, but Maker certainly stands out from the crowd. At the time of writing, it was the top 1 among the DeFi projects, with an estimated $18.5 billion dollars worth of assets locked into its protocol.
So is MakerDao going to be the dominant project in the DeFi space and is now a good time to invest in MKR? In the following Maker price prediction, we’ll take a look at the token’s prospects as well as what other analysts are predicting for its future price growth.
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A Brief Summary Of MakerDAO
There are of course numerous projects purporting to bring stability to the cryptocurrency sector - Tether, USDC and Gemini Dollar to name but a few. However, what makes Maker different is the way in which it leverages Ethereum smart contracts to maintain its pegging to the US dollar, rather than relying on reserves. MakerDAI is referred to as a decentralised stablecoin.
By using smart contracts, MakerDAO removes the need for a central reserve of dollars, as is the case with Tether or USDC. The problem with this approach is that it effectively means there is an element of centralisation - which plays against one of cryptocurrencies biggest strengths.
DAI is effectively backed by decentralised cryptocurrency debt. The inner workings of the pegging mechanism are beyond the scope of this article, but effectively it works by economic incentives.
It costs $1 to mint new DAI. Therefore, if the exchange price of DAI increases above the US dollar, then effectively, it would be possible to mint new DAI for $1 then immediately sell it for profit.
Conversely, if DAI drops below $1, then those who already have a collateralized debt position (CFP) on the MakerDAO platform can pay it back at a lower rate, which leads to more DAI being burned.
These mechanisms combine to ensure the price of DAI never strays far from that of the US dollar.
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So What About Maker (MKR)?
Those looking to invest in Maker might be confused as to what token they actually need to buy. Of course, this will depend on your goals.
MakerDAO is the name of the wider project - the DeFi system. If you intend to take part in this, then you’ll need to visit the website and get to grips with the system itself. When you enter into positions on the MakerDAO DeFi, you will use its native stablecoin, DAI, as a medium of exchange.
What we are looking at in this article, however, is the project’s utility token, Maker (MKR).
MKR token has two main functions in the DAI ecosystem. Firstly, holders are able to vote on how settlements would be bidding in the event of a cyber attack or system failure. Put simply, if the project was shut down, holders vote on the equivalent price of any lost DAI paid out in ETH.
MKR is also an integral part of the DAI leverage system. The CDPs issued by the platform have an interest rate of 0.5%. This interest must be paid for using MKR. The MKR is then burned, which means it is an inflationary token. In theory, if demand remains high, the value of MKR should increase as time goes on.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
A Look At Maker’s Rivals
There have been numerous DeFi projects emerging over the last couple of years, so anyone looking to make an investment in Maker should make sure they are familiar with the rival projects.
Realistically, Maker, AAVE and Compound have emerged as the market leaders and most industry insiders believe these projects will continue to be at the forefront of the DeFi movement. So how does Maker sit amongst them?
Maker, Compound and AAVE all allow users to borrow cryptocurrency and in terms of locked in value, AAVE holds the top spot. However, it should be noted that in 2021 Maker has actually overtaken Compound to claim the number 2 spot. The project is also continuing to grow, so it wouldn’t be surprising to see it topple AAVE in the near future. In fact, according to DeBank, the two projects are more or less neck and neck when it comes to locked in value.
Whilst Maker may not have the same level of support for liquidity mining as Compound, its strength lies in its stability - something which is becoming increasingly important in making the cryptocurrency market more appealing to investors from the world of traditional finance.
To put it simply, Maker certainly has rivals in the DeFi space but it has managed to hold its own thus far and actually increased its standing recently. Of course, there’s no reason why, as an investor, you can’t opt to acquire a holding in the top three projects.
Maker’s Price History
One thing that stands out about Maker is that the coin has always traded at a high price compared with many other cryptocurrencies. It took a while for major platforms to start listing MKR, but it was initially changing hands for over $1,000, before experiencing some chaotic price movement early on.
For example, MKR closed 2017 trading at around $873, before soaring up to $1589 in January of 2018. By the start of February, however, the token was back down at around $764. MKR regained the $1,000-mark once again in February, before things began to calm down - and the price of MKR went into decline.
MKR stayed below $1,000 for the remained of 2018 and for most of the latter half of 2019, it traded at less than $600. When the COVID pandemic struck the markets in March 2020, MKR sunk to its all-time low of $168.36 before starting on the road to recovery.
By August of 2020, the token had made impressive gains, reaching $721.60 before holding on above $500 for the rest of the year. Then, as we all know, 2021 saw the cryptocurrency market explode - taking MKR along with it.
During the first major upswing in January, Maker hit $1,574. However, this figure was dwarfed by February’s $2,600. There was a brief downturn in March/April before a record-breaking run in May saw MKR reach its all-time high of $6,292.31.
At the time of writing, Maker is trading at $2,120.51.
Read Also: Will Maker Rise in Value?
What’s Next: Maker Price Predictions For 2025
DeFi has been the hottest thing to hit the blockchain world since its inception and Maker is one of the biggest DeFi projects out there, so it will come as little surprise that many industry experts and analysts are predicting sustained growth for MKR.
DigitalCoinPrice, for example, has the price of Maker in a slow but steady growth over 2022, MKR is expected to be trading at $2,817.44 and in 2024 it could soar as high as $3,246.35, finally hitting the $4k mark by 2025.
Elsewhere, TradingBeasts has been more reserved in its Maker price prediction for 2025, but is nonetheless expecting significant growth. According to its technical analysis, MKR will hit an average trading price in excess of $4,000 by the latter half of 2025.
Another platform expecting big things from Maker over the next five years is WalletInvestor. It has the Maker token reaching a respectable $4,477.93 before the end of 2022. By 2023, the platform expects MKR to be trading at an average price of over $9,145.78 and by 2025 it could reach as high as $11,713.50.
Looking Further Ahead: Maker Price Predictions for 2030
Realistically, long term price predictions hold very little weight when it comes to cryptocurrency. The market simply changes too quickly for them to have a realistic chance of being accurate. If we look back to 2010, for example, we can see how dramatically different the industry looks today. There’s no reason to think this won’t be the case by 2030.
However, looking past 2025 we can see that many analysts are highly optimistic about MKR. WalletInvestor, for example, believes that the token will be trading at a potential high of $14,406.90 as early as the end of 2026. Meanwhile, DigitalCoinPrice believes MKR will spend much of 2026 and 2027 at around $5k, before surging as high as $8,462.86 in 2028.
Of course, no investment strategy should be based solely on these predictions, but they do suggest that those in the know believe Maker will continue to grow and hold its position as one of the leading DeFi projects in the cryptocurrency space.
Crypto-Rating has gone even further. They have Maker potentially topping out at over $20,000 per coin in 2030.
A cryptocurrency research firm by the name of Crypto Research Report is calling for Maker (MKR) to reach $7,500 by 2025, and $23,000 by 2030.
Check Out: Why Maker Coin Will Skyrocket
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Conclusion: Should You Invest In Maker?
There’s no denying it, Maker is one of the most intriguing DeFi projects there is and it has the potential to become the leading provider of decentralised lending. Whilst there may be competition from the likes of AAVE and Curve, it would only take a few months of sustained volatility for more people to turn to Maker and its promise of stability.
As we have seen, numerous analysts are predicting growth for Maker (MKR) in the coming five to ten years, with figures as high as $24k being touted as a genuine possibility. Of course, this is all speculation but still a very positive sign for anyone who has already invested in Maker.
So should you invest in Maker?
All thing’s considered, Maker is certainly a worthy addition to any cryptocurrency investment portfolio and presents an alternative to the major tokens such as Bitcoin, Ethereum and Ripple in that it is effectively competing in a different space.
Maker may well prove to be an excellent investment over both the short term and long term.
In addition to its solid technical credentials, MKR also has a built-in deflationary mechanism so, in theory at least, it is likely to increase in value over time - assuming demand for MakerDAO services remains high.
If you are yet to invest in any DeFi projects then Maker is certainly worthy of consideration. Of course, you should research all of your options before committing, but we think that it will continue to be one of the most important projects in the space and the price of MKR looks set to grow in the coming years.
Where To Invest In Maker
As we’ve noted, Maker MKR is the utility coin of MakerDAO and represents the quickest and most direct way of investing in the project. Of course, you’ll first need to find a reputable platform or exchange that lists the token.
Fortunately, MKR is available to trade on one of the industry’s top trading platforms - eToro. Here you’ll not only be able to acquire MKR, but also numerous other cryptocurrencies and even other financial instruments.
Opening an account is simple and once you’re up and running you’ll have access to eToro’s award-winning trading platform along with numerous guides and educational resources.
eToro – Best Exchange To Buy Maker
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs
What’s so good about Maker?
Maker’s main selling point over other DeFi projects is its stability and the mechanism in which it utilises a stablecoin to deliver it. Whereas other stable coins require a central holding of the fiat currency that underwrites the token - as is the case with Tether, for example - Maker’s ingenious use of smart contracts mean its system remains completely decentralised with no fiat reserves required.
How much will Maker be worth in 2025?
Nearly every Maker price prediction we have seen has been hugely optimistic. For example, DigitalCoinPrice has forecast that MKR will be worth over $4,100.
Is Maker better than AAVE?
Maker and AAVE are the top projects in the DeFi space and both have their strengths and weaknesses. Whereas Maker is believed to offer much better stability and protection for those using the platform, AAVE has been lauded for its UX. Ultimately, which is better will come down to investment goals and personal taste.
Is now a good time to invest in Maker?
If the industry analysts are to be believed, then Maker is poised for significant growth in the coming years. This means that, if you are considering investing in MKR, now could be the best time to do so. Of course, you should only add it to your portfolio once you have conducted your own thorough research.