Despite a few risks, cryptocurrencies and the blockchain industry are consistently growing strong. Solid financial infrastructure is being built, and investors are increasingly able to access institutional-grade custody services. Cryptocurrencies like Bitcoin and Ethereum have attracted the attention of many investors.
However, there is also a wide array of smaller altcoin offerings that present opportunities to investors. One such offering is Maker, a decentralized autonomous organization (DAO). In this article, we will explore why Maker coin is going to explode in 2023. But before that, let us get the basics right.
Maker allows users to lock in their Ethereum tokens to produce DAI, the stablecoin that MKR supports. The MakerDAO generates DAI coins using CDP smart contracts. Notably, DAI was the first decentralized stable coin on the Ethereum blockchain. Exchanges between MKR, DAI, and ETH occur using the Oasis Direct system. Oasis Direct is MakerDAO’s decentralized token exchange platform.
The success of any cryptocurrency project is not assured. However, if a crypto platform achieves its goals, early investors could generate massive returns over the long term. In addition, institutional and individual investors are now gaining access to the tools they need to manage and safeguard their crypto assets. Due to this, several crypto assets are poised to grow in the future, and Maker is one of them.
Is Maker All Set To Explode In 2023?
Maker is a decentralized autonomous organization that enables cheaper and lightning-fast transactions. It eliminates the complexities involved in the decentralized ecosystem by using Maker protocol. The platform was created with the sole objective of a multi-functional and multipurpose advantage.
The DAI token has unique properties. Instead of being backed by fiat currency like other stablecoins, DAI is backed by Ethereum. In 2021, more than 2.30% of Ethereum coins were locked into Maker DAO. Purchasing Maker can allow you to invest in a growing network of app developers operating on the Ethereum network as it is likely to soar in 2023.
Here are some of the factors that back up the prediction that Maker coin is going to explode in 2023.
#1 Strong fundamentals
To bring stability and address the accessibility issues in the cryptocurrency sector, the Maker team took the initiative of floating the Maker Protocol. The entire objective behind Maker Protocol was to create a pedestal that allows the convenience of generating Stable coin DAI against crypto collateral assets anytime, anywhere. The Maker Protocol deputes a two-token system.
DAI popularly offers immense advantages of digital money, keeping the fiat and its associated problems at bay. Maker's native token MKR has been routed as a governance token. The Maker ecosystem uses MKR for governing and managing DAI.
Notably, the whole Maker Protocol is devoted to the cause of unlocking the potential of decentralized finance (DeFi) for everyone. The motto that drives this ecosystem is “Empower Economic Development.” This in itself will facilitate equal access to the global financial marketplace. Buying MKR now is a great way to become a part of this growing platform.
#2 Unique features
The Maker protocol boasts various unique features. For instance, MKR employs a deflationary protocol to help maintain its value over time. As part of this system, a small interest fee in MKR is due whenever a CDP smart contract closes. A portion of this fee gets burned. In this way, the system maintains a healthy balance between the supply and demand of the digital asset. For various reasons, deflationary protocols are now becoming a standard feature in the DeFi sector.
One of the main functions of MKR is to ensure that DAI remains pegged to the dollar. This dual crypto strategy helps prevent volatility and provides users with more security in terms of the project’s resilience.
Another prominent feature of Maker is the Collateralized Debt Position (CDP) contract. These contracts are what make Maker autonomous. These advanced smart contracts are unique to the Maker ecosystem. A CDP contract initiates whenever you send ERC20 tokens to the Maker platform in exchange for DAI tokens.
These tokens are locked into a collateral debt smart contract. Users are then issued DAI in correlation to their deposited amounts. The CDP smart contracts automatically release the collateralized assets when the loan is repaid. Notably, whenever a user ends a CDP, it destroys an amount of DAI equal to the sum generated using it.
#3 Maker Foundation & Partnerships
MakerDAO is also active in community collaborations. The Maker Foundation plays a crucial role in public offerings, and the MKR token is listed on various exchanges, such as Bitcoin Trade, Buenbit, Panda Exchange, VWyre, Swissborg, and Coinbase. The Maker Foundation has also generated apps for supporting the Maker Protocol of blockchain algorithm. Migrate, Governance, and Oasis, are a few of them.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Price Action Of MKR: Historical Analysis And Price Prediction
Maker (MKR) was developed in 2015 to provide investors and borrowers a way to participate in the Maker ecosystem. The platform is headquartered in Denmark, and a programmer named Rune Christensen founded the network.
MKR started 2021 by trading at $582. The coin went on to reach its all-time high price of $6,339 in May, displaying a massive upward movement. The token is currently trading at $2,910.
Regarding MKR's future price prediction, Waller Investor predicts, Maker to hit $4,477.93 by the end of 2023 and $14,406.90 by the end of 2026.
According to Digitalcoin Maker will reach a price of $2,817.44 at the end of 2023 and $4,490.85 in 2026.
Why Maker Is Going To Explode In 2023: The Bottom Line
The Maker platform has continued to see growing popularity mainly because it brings various benefits to the market. MKR serves multiple purposes within the Maker ecosystem. These functionalities add to the overall usability of this token.
Maker enables decentralized exchanges to offer expeditious and inexpensive trades for their users. Integration with Maker helps these exchanges to run on steroids, making them trustworthy and secure.
Maker also reinforces gaming networks, thereby speeding up their performance in processing transactions. The platform also acts as a lending and credit scoring platform for merchants, where traders can ascertain the worthiness and credibility of their borrowers. They can also view their transaction history facilitating lending of tokens to those who stand a better chance of timely repayment.
Maker users can easily access many financial service applications like DEXs, lending dApps, etc. Ultimately, Maker (MKR) has endeavoured to enhance customer experience facilitating the user-friendly implementation of tools. For this and more reasons, Maker is likely to explode in 2023.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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