Why Maker Coin Will Skyrocket

The Maker Coin (MKR) is a promising cryptocurrency, with a lot of room for growth.

Last Updated January 17th 2022
5 Min Read

Blockchain technology and cryptocurrencies are slowly taking over the world of finance and investments. Traders and investors consider this emerging asset class a reliable store of value and a hedge against economic turbulence. The recent crypto marketwide bull run indicates that digital assets are surging in value and present countless opportunities.

While everyone has heard of Bitcoin, the largest and the oldest cryptocurrency, it is vital to remember that it is not the only promising virtual asset. For instance, MakerDAO (MKR) is a growing blockchain-powered ecosystem making headlines in recent times. This article seeks to explain why Maker Coin will skyrocket in 2022.

Considering key factors such as price history, technical capabilities, network updates, and community support, we have compiled a guide outlining why investing in Maker now could pay off in the long run. 

Why Choose Maker?

MakerDAO is a decentralized lending platform that uses smart contracts to lock digital assets on the Ethereum blockchain, resulting in the creation of the DAI stablecoin. The system uses a set of contracts to support each different aspect of the protocol. Critical parts of the application, such as lending, liquidation auctions, token markets, DAI operations, and governance rules, are all maintained by the Maker Foundation.

The DAI stablecoin is one of the most popular DeFi applications because of its integration into various Ethereum-based protocols. Unlike many other stablecoins, DAI has no administrator backdoors that can blacklist addresses from moving their tokens.

The MakerDAO protocol is one of the most complex applications created on the blockchain. The platform has proven to be a key player in the DeFi ecosystem. Although the platform encountered a few problems, MakerDAO’s development and crisis management teams have impressed DeFi enthusiasts and the crypto community. Buying MKR is a direct pathway into becoming a part of the Maker ecosystem.

Is Maker Going to Skyrocket in 2022? 

MakerDAO has become one of the flagship projects of the DeFi movement, thanks to a series of high-profile partnerships that have helped drive adoption. The unique proposition of MKR lies in the fact that it allows its holders to participate in the governance of DAI. Through 2020 and 2021, DAI has emerged as one of the leading stablecoins out there. The Maker platform still has room for growth, making now a good time to invest in MKR.

According to cryptonewz.com, Maker (MKR) is a good investment. Cryptoandfire.com has predicted a high rise of above $16,500 for MKR in 2025. Wallet Investor is bullish about MKR's price in the short term. By the end of 2022, the site predicts a trading price of 4,477.93. These numbers suggest that Maker could skyrocket in 2022.

Check Out: Why Maker Coin Is Going to Explode

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Factors That Help Maker Surge to New Heights

#1 Transparency of the network 

One of the main problems that Maker attempts to correct is transparency. The network utilizes smart contracts to eliminate the need to trust any party. Currently, stablecoins such as Tether USD require users to trust the network’s reserves. In most cases, users must rely on third-party auditors to verify the company’s holdings. 

Maker eliminates this need to trust centralized organizations. Users do not need to wait on external audits or company statements. The entire network is trackable via the blockchain. Maker goes a step further. For example, the company’s staff publishes recordings from every meeting on a company SoundCloud page for all users to review.

#2 Functions of MKR 

MakerDAO created the MKR token, and its primary purpose is to support the stability of MakerDAO’s DAI token and enable governance for the Dai Credit System. Holders of MKR weigh in on vital decisions regarding the operation and future of the system.

MKR is an ERC20 token created or burned depending on how close the DAI stablecoin is to the US dollar. The creation of a new MKR is dependent on the stability of DAI. If DAI remains stable, more MKR is burned, decreasing the total supply. If DAI fluctuates too far from the one-dollar peg, more MKR is created, increasing the total supply. 

MKR serves a lot of purposes in the Maker system. For example, you can use MKR to send value globally, like Bitcoin. You can also pay transaction fees on the Maker system using this token. Notably, MKR can be sent and received by any Ethereum account or smart contract set to use the MKR transfer function. 

#3 Value Proposition of DAI

DAI stablecoin is an ERC-20 token on the Ethereum blockchain, with an enduring value of one USD. It is also the key to the MakerDAO lending system. A DAI is created when a loan is taken out on MakerDAO. It is the currency users borrow and pay back. Thus, it serves various functions on the Maker platform.

  • Leveraged Traders - Traders can use ETH, WBTC, BAT, and USDC to create collateralized loans to acquire the stablecoin coin in DAI. DAI can then be used to purchase more ETH or another crypto asset. These tokens can be used for leveraging their position.
  • Cash Borrowers - Borrowers can sell and withdraw DAI for fiat. Through this method, they may use the money for more traditional purposes, such as purchasing a car, paying bills, or covering business expenses.
  • DAI Commerce - Due to the stablecoin’s decentralization features, DAI has a growing user and application base that chooses to complete transactions in DAI.

Why Maker Will Skyrocket: Expert Predictions

Several analysts have predicted a bright future for Maker. For example, Trading Beasts predicted MKR "to cross $2,748.998 by the end of 2022; the expected maximum price at the end of 2023 could be $2,798.084."

Digital Coin Price estimated that MKR "might cross $2,817.44 by the end of 2022 and $4,114.21 by 2025."

GOV Capital said, "the coming years will appear as a smooth time for Maker (MKR) as there could be an extension to the alliances and emerging innovations that will raise its price to $4,050.033 by the end of 2022 and $16,220.02 by 2025."

Should You Invest $1000 in Maker Right Now?

Similar to other digital assets, the price of MKR has been a bit volatile this year. So potential investors must be aware of this and consider MKR a part of their broader diversified crypto portfolio. That said, Maker is likely to succeed immensely in the future. So investing in MKR now could be a great idea.

Read Also: How to Invest in Maker

The Bottom Line 

The Maker platform is an emerging platform that could skyrocket in 2022. It has the potential to grow and double your investment. However, remember to perform due research before investing in any crypto.

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