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Highlights
- MKR crypto is the token used in the governance of the MakerDAO blockchain project
- The project also has a stablecoin DAI, which is said to be used by multiple apps and wallets
- MKR crypto is trading below its highest price, but the coming months may lift prices if demand rises
Cryptocurrencies have staged quite a comeback. From Bitcoin to Ether and Dogecoin to Shiba Inu, virtually all crypto assets, whether linked to a blockchain network or a meme token project, are up.
In the medium-to-long term, any cryptocurrency would need to prove its real utility. For example, the Ether token of the Ethereum network may surge in value if the demand for Ethereum’s blockchain rises. But apart from these top cryptos by market cap, there are others as well that are shining at the moment.
Maker, also referred to as MakerDAO, is one such crypto that has seen a high uptick in its trading volume over the past 24 hours. Let’s know more.
What is the Maker cryptocurrency?
The Maker blockchain project is a combination of multiple elements. The ecosystem consists of MakerDAO and the Maker Protocol, both of which serve different purposes. The protocol enables creation of the stablecoin DAI. DAI is pegged to the US dollar, and the project claims it is perfect for use as a stable digital currency with decentralized features.
The Maker crypto project has decentralized finance (DeFi) underpinnings. The governance rests in the hands of the users, who can vote on multiple issues by staking the MKR crypto. MKR in the Maker Protocol acts as the governance token.
Also read: Top 5 Web 3.0 crypto projects to watch
MKR crypto price
Unlike DAI, which has a stable value at all times, MKR crypto’s price can change according to market forces. As of now, the MKR token is trading at nearly US$2,280. The market cap is over US$2.2 billion.
MKR crypto price prediction
MKR is trading at a price that is nowhere near its peak price of US$6,000. This value was reached in May 2021 when a broad-based rally hit the cryptocurrency market. But since June last year, the MKR coin has hovered below US$4,000, with its price hitting a low of US$1,700 last month.
Also read: Can Tectonic crypto hit $1 by 2025? TONIC token’s price prediction
The rally of late can be attributed to a wider bullish trend in almost all cryptos and the buzz around the DeFi sector. MKR is used to vote on the governance of the Maker Protocol. If the rally sustains, MKR may hit US$2,500 by the end of February. It may touch US$4,000 by the end of 2022, but for this, a sustained rise in demand for the MKR crypto by users of the Maker Protocol is required.
Data provided by CoinMarketCap.com
Also read: Top 5 altcoins to watch in February
Bottom line
The MKR crypto has a high price per token, which sets it apart from cryptos like Cardano and Dogecoin. A buzz around DeFi protocols may have led to the recent rally in the MKR crypto. But to convert this limited rise into sustainable price appreciation, the Maker Protocol and its DAI stablecoin would need to establish their utility. DAI is being used by multiple wallets and games, which may give a boost to the MKR crypto.
