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Maker (MKR) is the governance token of the MakerDAO which is a decentralised application and Maker Protocol which is a software platform, both of which are based on the Ethereum blockchain which allow users to manage and issue the DAI stablecoin.
The Maker project whose task is to operate DAI, DAI is a stablecoin that is based on the Ethereum (ETC) blockchain, whose development and issuance is managed by the makerDAO decentralised autonomous organisation and the maker protocol. DAI’s price is soft-pegged to the US Dollar and is collateralised by a mixture of different cryptocurrencies all of which are deposited into smart-contract vaults everytime that new DAI are minted.
MKR tokens act as a kind of voting share for the organisation that manages DAI, they do not pay dividends to the token holders, however, they do give the holders voting rights over The Maker Protocol’s development. The MKR tokens are also expected to appreciate in value in accordance with DAI’s success.
The Maker ecosystem happens to be one of the earliest projects on the DeFi scene. Decentralised Finance (DeFi) refers to the industry that seeks to build decentralised financial products on top of smart-contract-enabled blockchains, such as Ethereum.
The current market capitalisation for the Maker protocol is more than $805 million. There is a maximum supply of 1,005,577 tokens and 97,631.04 (97%) of them are currently in circulation.
The uniqueness of MKR lies in the fact that it allows its holders to participate directly in the DAI governing process. Every MAker token holder is awarded with the right to vote on a number of changes to the Maker protocol, their voting power is dependent on the size of their MKR stake.
Some of the aspects of the protocol the holders can vote on are:
The ability for MKRs token holders to participate in the management of one of the largest stablecoins on the market is mainly what drives demand for the MKR tokens and thus, affects their value.
The first price peak for the Maker (MKR) token happened on 1 January 2018 at a price of $1,386.99, thereafter the price of MKR saw volatility with prices jumping upwards and downward until the start of 2021. At the start of 2021 and all through the quarter of the year the price of MKR climbed to reach its all-time highest price of $4,355.27 in April. Since then the price has staggered in both the upward and downward directions, the crypto has seen much volatility, which is a normal trend for the volatile nature of the crypto market.
Over the past few months, the global markets have been facing strong investor risk-off sentiment in the wake of the geopolitical tensions, Covid-19 lockdowns in China and supply chain issues. The cryptocurrency market has followed the trends of the greater market during these times, therefore the price of most cryptocurrencies have been falling, MKR does fall under this category.
According to some analysts, the future price of The Maker network (MKR) could reach up to $7,534.46 by 2027 and could see a price of more than $46,924.73 by 2032. However, it is important to remember that this future price prediction is based solely on data and does not take into account factors such as investor sentiment and the ever changing market conditions, both of which make it difficult to make accurate future price predictions.
MKR Price Chart
Sources: sofi.com, coinmarketcap.com, finance.yahoo.com, technewsleader.com
