Maker Price Prediction 2024: MKR Price Analysis
What's next for MakerDAO?
Key Takeaways
- Maker (MKR) is attempting to move above $3,000.
- MKR helps support MakerDAO’s DAI stablecoin.
- Our predictions suggest that MKR has reached a bottom.
Maker annouced the platform’s token buyback scheme in 2023, which was followed by news that a stablecoin linked to it had utility on the AAVE lending platform. The buyback scheme, which went live on 19 July, 2023, sees excess MKR purchased with MakerDAO’s DAI stablecoin and then burned.
On March 29, 2024, Maker disclosed the deployment of a 100-million DAI Direct Deposit Module into Spark’s sUSDe/DAI and USDe/DAI markets on Morpho Blue. This move aims to provide users with overcollateralized scalable liquidity, catering to those seeking to expand their exposure to Ethena’s assets.
However, the MKR price has fallen since and trades at $2,800 as of July 15, 2024.
MakerDAO did not respond to a request for comment.
Let’s now take a look at our own price predictions for SUI, made on July 15, 2024. We will also examine the MKR price history, and talk a little about what MKR is and what it does.
MakerDAO Price Prediction
Here are the MKR price predictions from CCN on July 15, 2024. It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong.
| Minimum MKR Price Prediction | Average MKR Price Prediction | Maximum MKR Price Prediction | |
|---|---|---|---|
| 2024 | $3,100 | $4,100 | $5,100 |
| 2025 | $4,500 | $4,900 | $5,300 |
| 2030 | $11,200 | $14,000 | $16,800 |
There are two methods used to create our Maker price predictions. More specifically, predictions are created using fractals (mirroring movements and indicator readings) and the wave count.
The mean of the two predictions gives the average Maker price prediction, the more bullish one is used for the maximum price prediction while the more bearish one is for the minimum.
Fractal Method
In August 2018, the weekly RSi generated a bullish divergence for the first time in its history. After the divergence, the MKR price consolidated for nearly two years before starting a rapid upward movement that led to the all-time high price of $6,317 in May 2021.
A similar bullish divergence and upward movement transpired between July 2022 and January 2023. If the increase has the same magnitude and duration, the price will reach a new all-time high of $8,450 in March 2025.
Projecting a similar rate of increase and correction leads to a Maker crypto price prediction of $3,100 and $5,300 for the end of 2024 and 2025, respectively.
Wave Count Method
The wave count suggests that MKR has started the fifth and final wave of an increase that began in 2023. Giving wave five 0.382 times the length of waves one and three combined leads to a new all-time high price of $7,750.
If wave five has the same duration as wave three, the high will be reached in May 2025. Then, projecting a similar correction to that of 2021 leads to our final target for the end of 2026.
Finally, we use the rate of increase for the past five years to make a MakerDAO price prediction for the end of 2030. in the 1,820 days since July 2024, the MKR price has increased by 376% for a daily rate of increase of 0.20%.
Projecting this increase until the end of 2030 leads to a target of $14,000. Adding and removing 20% to this target gives our minimum and maximum MakerDAO price predictions.
Maker Price Prediction for 2024
Even though both our fractal and wave count MakerDAO price predictions suggest the price will be increasing by the end of the year, they predict vastly different rate of increase. So, the target for the end of 2024 is different, being $3,100 and $5,100, respectively.
Maker Price Prediction for 2025
The fractal and wave count methods give more similar Maker price predictions for the end of 2025 since they predict a similar rate of decrease after the projected all-time high in the middle of the year. The actual Maker price prediction targets are $4,500 and $5,300, respectively.
Maker Price Prediction for 2030
Finally, using the daily rate of increase for the past five years gives a target range of between $11,200 and $16,800 for the end of 2030.
MKR Price Analysis
The daily time frame MKR price chart gives a bullish outlook. Firstly, this was because MKR broke out from a descending resistance trend line that had existed since April. Secondly, the upward movement was preceded by a double bullish divergence, present in both the RSI and MACD. Such divergences often precede significant upward movements.
If the increase continues, the Maker price can reach the 0.618 Fibonacci retracement resistance level at $3,280. This is also a horizontal resistance area and the final level before the yearly high of $4,069.
Short-Term Maker Price Prediction
The Maker price prediction for the next 24 hours depends on the assumption that Maker will increase toward the $3,280 resistance area. If this is the case, the Maker price prediction for tomorrow, on July 16, can be at $3,000, while it is projected to reach the $3,280 resistance area by the end of the week.
Maker Average True Range (ATR): MKR Volatility
The Average True Range (ATR) measures market volatility by averaging the largest of three values: the current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close over a period, typically 14 days. A rising ATR indicates increasing volatility, while a falling ATR indicates decreasing volatility.
Since ATR values can be higher for higher-priced assets, normalize ATR by dividing it by the asset price to compare volatility across different price levels. On July 15, 2024, MKR’s weekly ATR was 470, a sign of low volatility. The indicator has fallen since 2021. Divided by the $2,800 price, the ATR is 0.17.
Maker Market Cap to TVL Ratio
The Total Value Locked (TVL) to market cap ratio (TVL ratio) measures the valuation of a decentralized finance (DeFi) project by comparing its market capitalization to the total value of assets locked in its smart contracts. This ratio shows the project’s utilization and links the platform’s health to the value of locked assets.
A ratio above 1.0 indicates overvaluation because the market cap exceeds the value of assets used in the platform. A ratio below 1.0 indicates undervaluation because the market cap is lower than the value of locked assets. On July 15, 2024, the MKR TVL ratio was 0.31, a sign of undervaluation.
Maker Relative Strength Index (RSI): Is MKR Oversold or Undersold?
The Relative Strength Index (RSI) is a momentum indicator traders use to determine whether an asset is overbought or oversold. Movements above 70 and below 30 show over and undervaluation, respectively. Movements above and below the 50 line also indicate if the trend is bullish or bearish.
On July 15, 2024, the Maker weekly RSI was at 53, a sign of a bullish trend. The RSI recently fell below 50 and reclaimed it, a sign of a bullish trend.
Maker Price Performance Comparisons
Maker is a lending/borrowing protocol, so let’s compare it with other similar protocols.
Best Days and Months to Buy Maker
We took a look at the MKR price history and found the times when the price was at its lowest across certain days, months, quarters, and even weeks in the year, indicating the best times to buy MKR.
| Time to Buy MKR | Days, Month, and Quarters |
|---|---|
| Best Day | Friday |
| Best Week | 2 |
| Best Month | January |
| Best Quarter | First |
MKR Price History
Let’s take a closer look at the MakerDAO (MKR) price history. While past performance isn’t necessarily indicative of future results, understanding what MKR has done can help us contextualize future predictions.
2017-2020: MKR first came onto the open market in September 2017, for $270. When the market entered a bubble in late 2017 and early 2018, its price shot up and reached $1,690 on January 20, 2018. After that, though, the market entered a so-called crypto winter, operating below $800 for almost the entirety of the next three years.
2021: Things changed in early 2021 when the crypto market flourished, and MKR got involved in the action, with its price soaring to an all-time high of $6,339.02 on May 3, 2021. Following that, the price slipped down to close the year at $2,337.19.
2022: Things got even worse in 2022 when a series of market crashes led to it finally dropping below $1,000 in August and, following the collapse of the FTX exchange in November, it closed the year at $510.53, representing an annual loss of nearly 80%.
2023: MakerDAO’s price has seen some steady if inconsistent, improvement. The token rallied to a high of $971.18 on March 5. MKR’s value fell apart over the following months, with the nadir coming following the announcement that Crypto.com was suspending its U.S. institutional trading operations on June 10, when it was worth $537. After that, though, it recovered and by July 14 it was worth $852.
MKR broke past $1,000 on July 16, fell to $894.99 on July 18, and then hit $1,203.40 on July 21. Although MKR dipped slightly after that, it bounced back. On August 2, it traded at $1,351.42, its highest price since May 2022. The crypto then fell as Elon Musk’s SpaceX offloading millions of dollars worth of Bitcoin crashed the market. MKR stayed above $1,000, though, and the AAVE news saw it trade at around $1,150 on August 31, 2023. It then rose to around $1,707 on the first day of 2024, before trading at $2,138.18 on January 25, 2024.
2024: The price moved above $4,000 in March but has fallen since, currently trading at $2,800.
| Period | MKR Price |
|---|---|
| Today (July 15, 2024) | $2,818 |
| Last Week (July 8, 2024) | $2,188 |
| Last Month (June 15, 2024) | $2,294 |
| Three Months Ago (April 15, 2024) | $3,140 |
| Last Year (June 15, 2024) | $970 |
| Launch (December, 2017) | $1,042 |
| All-Time High (May 3, 2021) | $6,292 |
| All-Time Low (March 16, 2020) | $168 |
Maker Market Cap
The market capitalization, or market cap, is the sum of the total number of Maker in circulation multiplied by its price. On July 15, 2024, MKR’s market cap was $2.6 billion, making it the 37th largest crypto by that metric.
Who Owns the Most MakerDAO (MKR)?
As of July 15, 2024, the addresses with the most MKR were
- 0x0a3f6849f78076aefadf113f5bed87720274ddc0. This wallet held 126,844 DAO, or 12.61% of the supply.
- 0xbe8e3e3618f7474f8cb1d074a26affef007e98fb. This wallet held 48,965 DAO, or 4.87% of the supply.
- 0x14ceff4bc1ec64d7dd3c49538c10bbebd4e1f1b5. This wallet held 43,447 DAO, or 4.32% of the supply.
- 0xe9aaa7a9ddc0877626c1779abc29993ad89a6c1f. This wallet held 31,984 DAO, or 3.18% of the supply.
- 0xbba4c8eb57df16c4cfabe4e9a3ab697a3e0c65d8. This wallet held 31,728 DAO, or 3.16% of the supply.
Maker Supply and Distribution
| Supply and distribution | Figures |
|---|---|
| Maximum supply | 1,005,577 |
| Circulating supply on July 15, 2024 | 930,610 (93% of maximum supply) |
| Holder distribution as of July 15, 2024 | Top 10 holders own 39% of maximum supply |
From the Whitepaper
The Maker Protocol’s technical documentation, or whitepaper , says it aims to let people create DAI with their own collateral.
It adds: “Blockchain technology provides an unprecedented opportunity to ease the public’s growing frustration with—and distrust of—dysfunctional centralized financial systems. By distributing data across a network of computers, the technology allows any group of individuals to embrace transparency rather than central-entity control.
“The result is an unbiased, transparent, and highly efficient permissionless system—one that can improve current global financial and monetary structures and better serve the public good.”
MakerDAO (MKR) Explained
Danish crypto entrepreneur Rune Christiansen set up the MakerDAO (Decentralized Autonomous Organization) in 2014. Christiansen’s goal was to allow people to use crypto as collateral while taking out loans.
The Maker Protocol, came out in 2017. It supports the DAI stablecoin, which matches the value of the dollar. DAI and MKR are linked through a series of smart contracts, computer programs which automatically execute when certain conditions are met.
The MKR crypto token supports both MakerDAO and the Maker Protocol.
How MakerDAO Works
Both the MakerDAO and Maker Protocol systems operate on the Ethereum (ETH) blockchain. MakerDAO allows people to take out loans in the DAI stablecoin, providing crypto as collateral. Meanwhile, the Maker Protocol ensures that DAI stays pegged to the dollar.
MKR is, technically, called Maker. However, many people still call it MakerDAO. People who hold the token can vote on changes to the network. People can buy, sell, and trade MKR on exchanges.
One thing that we should mention here is that, because MakerDAO exists on the Ethereum blockchain, it is a token, rather than a coin. You might see references to such things as a MakerDAO coin price prediction, but these are wrong.
Is MakerDAO a Good Investment?
It is hard to say. The AAVE announcement has boosted MKR’s price, but we don’t know how long that will last. Likewise, while the platform bolstered its reserves, that could all fade away. It remains to be seen if the Maker DAO itself will approve SparkLend on Gnosis, and we still don’t know what impact this will have on MKR.
Rune Christensen – a developer and entrepreneur – is regarded as the founder of MakerDAO. Launched in August 2015 by the founding team, the role of the MKR token was to act as a governance token.
At a time when the world of crypto has been shaken by the United States Security and Exchange Commission (SEC)’s legal activities, some caution is, as ever advised. If you want to invest in MakerDAO, you will have to do your own research first.
Will MakerDAO go up or down?
No one can honestly say for sure right now. While price prediction sites are upbeat about the token’s chances, price predictions are wrong more often than not. You should also remember that prices can, and do, go down as well as up.
Should I invest in MakerDAO?
Before you decide whether or not to invest in MakerDAO, you will need to do your own research, not only on MKR but on other, similar, coins and tokens.
FAQs
Will MakerDAO reach $10,000?
Our price predictions suggest that Maker can move above $10,000 in 2030.
What is MakerDAO used for?
MKR is a governance token, meaning that people who hold it can vote on proposals to changes to the MakerDAO crypto lending platform and the Maker Protocol, which manages the DAI stablecoin.
Will MakerDAO reach $10,000?
Our price predictions suggest that Maker can move above $10,000 in 2030.
What is MakerDAO used for?
MKR is a governance token, meaning that people who hold it can vote on proposals to changes to the MakerDAO crypto lending platform and the Maker Protocol, which manages the DAI stablecoin.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
