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Maker (MKR) Price Prediction for 2021



Maker Price Prediction 2021

Blockchain and cryptocurrencies have experienced remarkable stride over the last few years. However, there are still a few hurdles like insane volatility. This insane price fluctuation is why stablecoins have been an important introduction into the market.

MakerDAO is a key player in the emergence of stablecoins as they seek to find a lasting solution to price volatility. The project became a hit among investors and that is why many are curious about Maker (MKR) price predictions for 2021. This is what we’re going to share with you in this article, so you can easier decide if MKR is worth holding or not in 2021.

Since Maker (MKR) is based on the idea of stablecoin, what makes it different and how does that affect their price in the market? One thing synonymous with stablecoin is the pegging of the crypto asset to a stable asset. A move that is meant to tackle the high volatility of the crypto assets. So, will that swing the Maker price prediction 2021 in a positive direction? We are about to find out.

What is Maker?


Imagine if assets like the EUR fluctuate wildly as we have in cryptocurrency. Imagine if groceries worth €100 suddenly drop down to €80 or up to €120 in matters of hours. That was the main state of cryptocurrency during the crypto hype of 2017 up to the introduction of stablecoin by Maker called DAI. The MakerDAO project began back in 2014 and the focus was on the introduction of Collateralized Debt Position (CDP) to possibly solve the bottleneck of high volatility in the crypto market.

As we mentioned earlier, stablecoin as a crypto asset is pegged to a more stable asset like gold, fiat currencies, commodities, etc. So, the act of pegging is simply setting the exchange rate of one asset to match the value of another asset. As for DAI, it is fixed to the USD and as such offers, more stability compared to other crypto assets. The fact that it is built on the Ethereum chain also means it can boast of decentralization and transparency just like other crypto assets.

MakerDAO is the platform on which Dai tokens are issued and sold and it is exchanged at the value of a dollar (USD). Whereas, Maker (MKR) is the governance token used on the MakerDAO platform to oversee the platform. So, essentially MakerDAO is a dual-token system and that includes MKR the governance token, and the DAI token, which is the stablecoin. The idea is to have a distinct ecosystem, which is more trustless and fair, and better equipped than other protocols in the market. The three primary contributors to the Maker protocol are the users, maintainers, and governors.

Maker was established in August 2015 and became tradable on the Ethereum blockchain before the platform itself was created the following year in April. The founder is Rune Christensen who holds a Biochemistry degree from Københavns Universitet. Before the release of the Maker platform, MKR tokens were issued in exchange for eth and BTC. By December 2017, the DAI token was finally released at a stable rate of 1:1 against the USD. The Maker team has grown in strength to 35 team members since it was launched.

A Brief Overview of How Maker Works

The Maker protocol has two tokens that we will explore, which are the MKR governance token and the DAI stablecoin. However, we are more concerned about MKR as that we want to give the Maker price forecast for 2021.

We have talked about Collateralized Debt Position (CDP), it is time to know its function and how it affects the MKR price in the market. To use the Maker protocol, you need to deposit an acceptable asset. After which a CDP is created and you are issued the equivalent amount of your deposit in DAI token. In essence, what you are doing here is that you are using your deposited asset as a loan to get DAI. You can then use Dai in any way you see fit with no restrictions. Given that Dai is a stablecoin, you only need to pay back the amount borrowed plus the cumulated interest.

MakerDao Coin Stability: Its Effect on Maker Price Prediction

Understanding how MakerDao keeps DAI stable is key to our Maker price prediction 2021. First, we explain how collateral value relates to the price of Maker’s Stablecoin Dai. The Maker protocol launches DAI to support just one collateral at the start, and that is Pooled Ether (PETH). To get PETH for your collateral in your CDP, you will need to deposit Ethereum to get the same amount in PETH. The idea of PETH is to guide against the crashing of the market price of ETH, this way CDP will maintain a collateral value higher than the debt. This is done by recapitalizing the market through the reduction of PETH supply in the market, which invariably jack up demand and as a result the price of the DAI token. At this moment, the collateral value held in the CDP increases while the general debt value decreases.

To achieve stability for the DAI token, Maker uses what we call Target Rate Feedback Mechanism (TRFM). This Auto mechanism is what is used to keep DAI stable. Now the target price for DAI is one DAI equals one Dollar. Therefore, the Target Rate oversees the change required for Dai price over a period to meet the target price when there is a market swing. When the TRFM mechanism is used, the pegged rate of 1:1 is disrupted but it is necessary to push the Dai price back to position. For instance, should the Dai price goes above $1, the TRFM decreases to push the price back down.

Demand and supply dynamics help determine the Target Rate and TRFM. Nevertheless, holders of Maker tokens can vote on the settings of the sensitivity parameter of the TRFM. This parameter is responsible for determining the level of response of the TRFM. Whether it is mild or severe depends on the deviation of DAI from the Target price.

Inevitably, almost everything about Maker (MKR) is tied to DAI, and DAI is tied to Maker (MKR). To read the movement of the Maker (MKR) price also means understanding how DAI stablecoin works. Understanding the relationship between the Maker token (MKR) and the platform’s DAI stablecoin is essential in predicting the price of the Maker token (MKR).

Maker (MKR) Price Predictions for 2021

With the strong bullish condition of the market, users will definitely be trying to see which coin they should dip into. One parameter to deciding on the crypto market is price forecast, trying to predict the trajectory of the token in terms of price. We will look at some Maker price forecasts for 2021 from various sources to see their take on the Maker token (MKR). Will it turn out positive in 2021? We are about to find out.

Price Forecast by Digitalcoinprice

Analysts at Digitalcoinprice believe that Maker is on a positive run for 2021. They believe we shouldn’t see any significant downward movement in the meantime, predicting the token to reach as high as 4,242.79 USD in 2021. That is astonishing for a token currently trading for $2,644.75 as of February 13, 2021. Additionally, by the end of the year, the token could be trading for double its current price.

Coinpedia Maker Forecast

Interestingly, MKR took off with a price of $ 582.22 on January 01 of this year and by the end of the month closing at $ 1,480.81. Here at Coinpedia, the coin is predicted to go up also while bearing market fluctuation in mind.

Maker Price Prediction 2021 by WalletInvestors

WalletInvestors position Maker as a good long-term investment (over a year). The AI Analyst projects it as crypto with potentially high returns with the price predicted to rise to $3041.370 in 2021. Generally, the bullish run in the market right is in favor of positive price movement. Also, a bullish market makes trading easier as it gives cryptos a positive run.

YouTube Crypto Devotees and Their Maker Price Forecasts for 2021

YouTubers have been chipping in with their predictions too since the beginning of the year, we will be looking at some of them.

For instance, a crypto watcher Skinnymoonhunter release his predictions about Maker as earlier as January 4, and he predicted the coin to go very very high above $1000. This prediction came when Maker was still around $742 in the market.

In fact, he predicted that Maker could reach as high as $2000, which it has already. He says he projects the token to surpass that level to reach may be up to $5000 in his updated Maker price prediction released on February 9, 2021. You can watch his full briefings here:

Another YouTuber Top Coin believes the current bullish market will see Maker gain in price substantially in the market. He is optimistic that if the market cap reaches like 8 billion, we could see MKR token reach as high as $9000 in the market during 2021. Watch his prediction below:

Words from Crypto Twitter on Maker (MKR) Price Prediction 2021

Marz Crypto’s prediction

According to a post by @marzcrypto_ on February 8, 2021, he predicted the MKR token to reach $3,250 even by the end of the week. The prediction is not far behind as MKR is currently trading at $2,607.35 as of February 13, 2021, and is expected to trade as high as $2,812.10 for the day.

Dana’s Prediction

In Dana’s post, it shows that MKR has experienced a 366.59% gain since the start of the year and February 13, 2021. This is owing to the bullish market conditions, there are no indications that will change yet as of now. So it projected that the price of MKR will continue rising.

Can MAKER Reach $5,000?

According to Digitalcoin, the Token will fall just a bit short of the $5,000 mark in 2021 as it is projected to jump up to $4,811. However, it will break through the $5,000 mark in 2022. In 5 years, MKR could surpass $10,000.

Can MAKER Reach the $10,000 Mark?

Right now, the MAKER token is trading at a higher price ($3,026.12) than the second most popular coin in terms of market cap. However, can this token reach the golden summit of $10,000? It looks like the token has the potential to do so as demand for the token continues to grow due to its function as a governance token of the Maker protocol. According to Digitalcoin, the token will break through the $10,000 mark by 2026. That is five years from now.

Is MAKER Going to Crash?

No, the MAKER token is very unlikely to crash as its foundation is solid and it has a strong market presence. The popularity of its stablecoin DAI will also give the needed solidity in the market to continue being relevant to users and investors alike. Therefore, giving it a long-term future.

Is MAKER Legit or a Scam?

There is nothing to indicate the MAKER token is a scam, the token has been around for a while and has a solid base. Its DAI stablecoin is quite popular among users, which strengthens its case as a legit project.

Is MKR Worth Your Trouble?

The performance of a governance token depends on the general performance of the underlying protocol. Fortunately, with Maker, performance should not be an issue for a protocol that is leading other DeFi protocol at the moment, according to DeFi Pulse. Maker is currently ranked number 1 in the DeFi space and ranks number 33 in the overall cryptocurrency space. It is also the leading DeFi lending protocol at the moment ahead of well-known protocols like Aave, Compound, etc. It has more Total Locked Value than others worth a whopping $6.56B with a market dominance of 16.38%.

The projection is that as long as DeFi continues to bloom so will Maker continue to dominate and grow in value.


The outlook for the MKR price looks good going by all the predictions we have seen so far, as well as the market factors. Several predictions point at the market value of MKR going up with some predicting it could reach as high as $4000 during 2021. If we are to be optimistic and market factors play in favor, we could be looking at MKR reaching as high as $10,000. It is DeFinitely a project to watch out for in 2021.

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