The MakerDAO project is a blockchain-based digital currency system that creates and distributes Dai as a stablecoin. Launched in 2017, the MakerDAO project uses MKR crypto as an underlying token to manage the price of its DAI stablecoin, which has served as a reliable store of value for the cryptocurrency market since its release. In this blog post, we discuss how MKR has fared over the last few months and whether or not MakerDAO’s MKR token can reach $4,000 by 2022.
MakerDAO blockchain project uses MKR crypto tokens to govern the project. The project also has a stablecoin called DAI, which is reportedly used by multiple apps and wallets. In the coming months, prices may rise if demand rises for MKR crypto
Cryptocurrencies have staged quite a comeback. In the medium-to-long term, any cryptocurrency would need to prove its real utility. Crypto assets, whether linked to blockchain networks or meme token projects, are up. For instance, Ether tokens on the Ethereum network can appreciate if the demand for Ethereum’s blockchain rises. However, there are other cryptos that are shining right now besides these top cryptos by market cap.
Making, also known as MakerDAO, is one such cryptocurrency that has experienced a spike in trading volume over the past weeks. Let’s know more.
MakerDao Stablecoin Explained
A number of elements make up the Maker blockchain project. The MakerDAO ecosystem is made up of MakerDAO and Maker Protocol, both of which serve different functions. DAI is created using the Maker Protocol. DAI is pegged to the US dollar, and the project claims it is perfect for use as a stable digital currency with decentralized features.
Underlying the Maker crypto project is decentralized finance (DeFi). Various issues can be voted on through staking the MKR crypto, which puts control in the hands of the users. This is how the Maker Protocol functions.
MKR Crypto’s Price is on the Rise
The price of MKR crypto can change according to market conditions, as opposed to DAI, which has a stable value at all times. MKR tokens are currently trading near $2,280. Their market capitalization exceeds US$2.2 billion.
MKR crypto price prediction
The price of MKR has fallen to a level far below its peak of US$6,000. In May 2021, the cryptocurrency market experienced a broad-based rally. In recent months, however, the MKR coin’s price has hovered below US$4,000, with a recent low of US$1,700.
Lately, the rally has been attributed to a wider bullish trend in almost all cryptos and to the buzz surrounding the DeFi sector. Maker Protocol votes are conducted with MKR. It is possible for MKR to reach US$2,500 before February ends if the rally continues. By the end of 2022, it may reach US$4,000, but a sustained rise in demand for MKR crypto by Maker Protocol users is required to make this possible.
The Powerful Ethereum Token
The MKR crypto has a high price per token, which makes it stand out from the likes of Cardano and Dogecoin. MKR’s recent rally may be attributable to buzz around the DeFi protocols. To turn this limited price rise into sustained price appreciation, Maker Protocol and the DAI stablecoin are needed would need to establish their utility. DAI is being used by multiple wallets and games, which may give a boost to the MKR crypto.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
