Maker(MKR)/USDT Price Prediction: 26 January 2022

Overview

Maker(MKR) is a digital asset used by its Decentralized Autonomous Organization(DAO) MakerDAO.the main objective of the DAO is to minimize the price volatility of its stable coin. And Maker(MKR) is an Ethereum-based token created to serve the purpose of a governance & utility token for the platform. The MKR tokens cannot be mined but can directly be bought from the exchange. The MKR follows the principle of margin trading which provides a high level of security at affordable prices. 

On the other hand, MKR crypto also gives its holders the power to vote on proposals like which cryptocurrency can be locked or what could be the liquidation range for the asset. The protocol accepts multiple cryptocurrencies such as Ethereum, Decentraland, Basic Attention Token, etc which are used to generate DAI, the stablecoin of the platform.

Introduction to Maker(MKR)-In Brief

The MKR coin is part of the protocol which builds a rock-solid stablecoin that is always locked at $1 despite the market trend. Much unlike Tether which undergoes multiple audit systems, MakerDAO is backed by the real cryptocurrencies with real value which are stacked as collateral. However, in case of any loss in the collateral value, the system uses the MKR crypto to refill the losses by paying the debts. 

The Maker Protocol was created in 2015 by a group of developers from the Cayman Islands led by Christensen which was later formalized as Maker Foundation. MKR token was first launched and sold in 2017 to raise $12 million. Further in 2018, $15 million worth of tokens were sold to Andreessen Horowitz, a venture capital firm, and most recently an additional $27.5 million was raised from venture firms in 2019. 

Additional Read: Daily Crypto News 26 January, 2022

How Does Maker Work?

Maker protocol uses 2 crypto-asset for the smooth functioning of the protocol, DAI, and MKR. DAI is a stablecoin while MKR is a utility and a governance token. The main aim of the Maker Protocol is to operate and maintain DAI without the need for any bank or government. 

DAI

DAI is a stablecoin that is pegged by the US Dollar and the Maker protocol team is pretty confident of the DAI price to maintain a constant value of $1. One can stake their cryptocurrencies to procure DAI just like a loan in any bank. Further users can also return the borrowed DAI to claim back their cryptocurrency.

MKR 

MKR as said is a governance token that allows the holders to vote on the proposals on key decisions concerning the DAI token. Initially, 1 million MKR tokens were created to govern the Maker Protocol. 

The voting process on the platform is bifurcated into 3 ways,

• Proposal Voting

The MKR holders study the proposals and also gauge the sentiments on the proposal and then commit any changes to the platform.

• Executive Voting

Anyone who owns the MKR tokens cast their vote on the key decisions. And if the Executive vote is passed, then the code in the protocol is changed to implement the winning proposal.

• Non-MKR holders Voting

This type of voting is done by the non-MKR holders using the threads in the MakerDAO forum. However, the MKR holders, depending on the MKR tokens they hold, earn the authority to vote on the proposals.

DAI Saving Rate

The amount of DAI holders earn by saving DAI on the platform is known as the DAI saving rate. It fluctuates from as high as more than 8% per annum to as low as 0%. During the market crash, this rate is set to zero to prevent a rise in the value of the DAI crypto. Whenever the DAI price rises above $1, MKR holders vote on the proposal to decrease the saving rate so that the demand is reduced to bring back the price to $1.

Additional Read: Marker Technical Analysis 

Will MKR Price Hit $10,000 in 2022?

Maker price maintained a narrow trend before the beginning of the 2021 bull run. The price was hovering below $600 which surged like a monster to hit as high as $6000 in the first half of 2021. However the May crash squeezed much of the profit which slashed the price towards $1700. These support levels were maintained strongly during every market plunge and hence can be considered as one of the strong support zones. 

Ever since the mid of Q4 2022, the price is constantly trending within a massive descending trend that also included a couple of consolidations. The price since the beginning of 2022 is plummeting like a waterfall including negligible buying volume. Therefore each attempt of infusing notable buying volume is just resulting in an accumulation that is below the required levels to flip the rally. 

As the market is said to continue within the narrow trend for some more time, MKR price may also consolidate which may include notable plunges. And hence the possibilities of breathing below the strong support levels at $1700 appear pretty high. With yet another plunge the price is feared to hit $1000 levels which is also a high-demand area. Here one can expect a trend reversal which may get back the $1500 levels yet again in the next 2 to 3 months. The target for 2022 appears to be pretty huge and only a 2021 like rally may uplift the price to these levels. 

Factors Impacting MKR Price Today

DAI Architecture

The DAI stablecoin is designed to maintain the store of value without significant depreciation over time and also keep the value amid extreme volatility within the crypto space.

Community Governance

The proposals are framed on a decentralized governance mechanism which in turn relies on a smart contract. These contracts provide users control over the system and ensure high transparency

MKR Token Cannot be Mined

Unlike popular currencies like Bitcoin and Ethereum, Maker coin cannot be mined as it is only created to destroy the price fluctuations on DAI tokens. The asset can be directly bought in front of the exchanges. 

MKR Strategy

The usage of two cryptocurrencies for the smooth functioning of the protocol usually keeps the platform growth transparent. And also the more a user holds MKR tokens, the more weightage his/her vote holds. This may allow the users to acquire more MKR tokens.

Where & How to buy Maker(MKR)?

Maker(MKR) token has been listed on CoinDCX for a pretty long time and it can be bought once you register. To register just follow 3 simple steps, firstly download the CoinDCX App on your smartphone. Next register using the required details and lastly fund your wallet and begin your trade on CoinDCX. 

Currently, CoinDCX is running an exciting referral reward program, ‘3x Referral Dhamaka’, where you stand a chance to win rewards in ETH. All you need to do is bring on-board new people with your referral code. Once they place their first order, you become eligible for the reward. 

So why wait, download the App now and begin your trading journey at a single touch!

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