Maker (MKR) is the governance and utility token native to the decentralized lending platform MakerDAO. MakerDAO is a decentralized autonomous organization based on the Ethereum blockchain, created and developed in 2014. First conceived in 2015, Maker (MKR) launched fully in 2017 and is an ERC-20 token used in the Maker ecosystem. The MakerDAO dev team also launched a stablecoin called Dai (DAI), the value of which is secured by other cryptocurrencies that are deposited into “vaults” as collateral.
MKR holders can participate in the governance of the system by proposing and voting on changes and future updates to the network. MKR is minted and burned according to market conditions to ensure that DAI is always fully collateralized. Unlike DAI, which is pegged to the value of the US dollar, MKR is more volatile, meaning that its price may experience dramatic changes.
What are the specific factors that influence the price of Maker (MKR) and what determines MKR value?
If you’ve ever wondered this, then you’re in the right place. We’ve compiled everything you need in order to get a better understanding of the intricacies of Maker price – and the factors that influence it.
Maker Price History
Maker (MKR) began trading at a rather favorable price thanks to the promise of the elaborate Maker ecosystem. Maker’s price is volatile, unlike Dai’s which is regulated by the issuance and removal of MKR. Maker value is subject to frequent price corrections and trend swings, sometimes causing its price to plummet or rise by tens of percent within a short period.
Maker traded between the prices of $800 and $1,500 in the last two weeks of December 2017, which was a time of major hype in the crypto world when Bitcoin was getting close to its then all-time high (ATH) of $20,000. There was a bit of volatility in January 2018 when MKR mostly traded between $900 and $1,600. In February, MKR value dipped to a low of $815, followed by more dips in March when Maker price fell to around $500. After bottoming out at $480 in the first week of April, MKR made gains for the rest of the month until it peaked at about $1,200 on 5 May. However, MKR soon fell and was worth around $750 by the end of the month. Bearish trends continued in June as well, and Maker price recorded new lows in the following months from July to mid-September when it dipped as low as $300. There was a brief positive price correction in October when MKR traded above $750, but prices dipped to about $300 in November before climbing back above $460 at the end of the year.
January 2019 wasn’t a good month for Maker as it lost 20% of its value, but prices then doubled in February. After more steady gains in March MKR reached its peak for the year of over $780 at the start of April. The rest of 2019, however, was spent mostly in decline and MKR was worth $440 by the end of the year.
2020 wasn’t much better for Maker – after making gains of over 60% in January and February, the crypto recorded its all-time low (ATL) in MARCH 2020 when MKR price dipped to $161. Maker price gradually recovered to $350 in April, before retesting the resistance at $700 in August 2020 and peaking above $840. This was followed by more lows at the end of September when MKR traded at $430. The average price for Maker (MKR) in December 2020 was $535.
The year 2021 turned out to be extremely bullish for Maker as well as a great number of other cryptocurrencies. Maker price recovered in January when MKR briefly traded above $2,000, before reaching new highs in February of over $3,000. After retracing in March, MKR price recorded an all-time high of $4,100 in April.
Analyzing Maker’s Price History
Maker’s price history can be analyzed with many of the same techniques that investors and traders use in other financial markets such as the stock market. Despite high levels of volatility, analysts can make predictions about Maker’s future price movement based on its price history and other data.
Technical analysis (TA) is commonly used as one of the main tools in investment strategies to identify past trends, patterns, and price movements. By making sense of these patterns analysts can determine the likely future trajectory of MKR and other cryptos. TA is often used in combination with fundamental and sentiment analysis to evaluate the price of Maker and other assets.
Fundamental analysis examines the dev team activity, important news and events, upgrades, updates, utility, technology, partnerships and a multitude of other factors that can influence the price of MKR. Sentiment analysis interprets opinion data and uses information collected from relevant sources like Google Analytics to categorize the sentiment in financial markets as positive, negative or neutral. Sentiment represents the general feeling of investors and traders about certain cryptocurrencies and other assets.
Factors Influencing the Price of Maker (MKR)
A multitude of factors can influence the price of Maker, including the supply of MKR tokens. Maker’s supply is dynamic as MKR is minted or burned during market swings to ensure DAI is always fully collateralized. So far, however, the supply has remained fairly close to 1 million MKR and is fully diluted. Because of this somewhat constant supply, any change in the demand for MKR will influence its price.
One source of demand for MKR is its utility as a governance token. MKR holders can vote on changes to aspects of the Maker Protocol such as stability fees, debt ceilings and which cryptocurrencies to accept as collateral. The fact that MKR’s other function is as a recapitalization resource strongly incentivizes MKR holders to govern the system well.
Although Maker doesn’t pay dividends to MKR holders, the value of the tokens is expected to rise in correlation with the success of Dai. Thus, the popularity of the MakerDAO lending system, how well it functions and how many active users it has will likely influence the price of MKR.
The price of Maker can also be affected by changes in the wider economy, as was the case when it surged in 2021 along with Bitcoin and the rest of the crypto market. The pandemic that broke out in 2020 also left a mark on the price of MKR and the value of other cryptos as markets around the world crashed.
General adoption and mainstream use of crypto, as well as government regulations, also play an important role in the price cycle of MKR and other crypto assets. Many banks and governments are already exploring the use of stablecoins in their operations. If they choose DAI for their stablecoin settlements it will likely have a positive effect on the price of MKR.
Live Maker Value and Market Cap
The live price of Maker is in constant flux as it is decided by the balance of buying and selling activity in the market which constantly changes. The cryptocurrency market is dynamic and highly volatile when compared with other financial markets. Volatility can cause both major losses and major gains, which is why investing in crypto can be both risky and lucrative.
The price of Maker can change dramatically within a short space of time due to the high levels of volatility. The market cap of Maker is calculated by multiplying the current price of MKR with the number of MKR tokens in the circulating supply. The total supply of MKR is much lower than that of Bitcoin and many other cryptocurrencies.
The current price of Maker is EUR. It has changed by EUR in the last 24 hours and MKR has a 24-hour trading volume of EUR. Maker current Kriptomat ranking is , with a market cap of EUR. It has a circulating supply of . Max supply is MKR.
Maker Price FAQ
What was Maker’s lowest price?
Maker recorded an all-time low price in March 2020 when it traded at the value of $161. After touching its ATL, MKR value increased by about 2,450% to reach its ATH.
What was Maker’s highest price?
On 15 April 2021, Maker reached its all-time high of $4,100 during a major bull run, driven by positive momentum after a brief dip in March 2021.
What will Maker be worth in the future?
Although no one can predict the future with certainty, MKR is valuable for its utility as a governance token and it incentivizes holders to govern the Maker Protocol well. Thus, if adoption of the Maker ecosystem increases and the MakerDAO continues to make good decisions, one would expect MKR to appreciate in value.
The price of Maker has had a turbulent history, from trading at lows of $161 to reaching new highs above $4,000. This dramatic change has rewarded investors with incredible gains of 2,450% from March 2020 to April 2021.
MKR price is defined by the balance of buyers and sellers in the market and keeps changing according to volatility levels, demand for MKR’s governance rights, and broader market trends.
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