Maker (MKR): creation history, how it works, MKR token and cryptocurrency development forecasts

Cryptocurrency prices are volatile and not stable, everyone knows this. For example, bitcoin: at the beginning of the coronavirus pandemic, the price fell to $8,667, and in November 2021 the coin reached a maximum price of $67,549, at the end of October 2022 the coin was trading for $20,419. Stablecoins are the solution to this problem. This is a cryptocurrency that has its own value tied to a “stronger” asset (very often - the US dollar), so that the price fluctuates less. Maker is trying to solve the problem with its own stablecoins MKR and DAI, and quite successfully, as in September 2022, Maker (MKR) managed to take the position of the most profitable cryptocurrency. Therefore, we would like to acquaint you in detail with the history of the creation of Maker (MKR), how the token works, what are the forecasts for the course and how to buy a maker cryptocurrency.

History of creation and development team

In fact, Maker was conceived as early as 2015 by entrepreneur Rune Christensen, but the project didn't launch until December 2017. As for the Maker token, it was issued before Dai, only in December 2019, the Maker Foundation gave control of the MKR token to the Maker management, which is the owners of the tokens. From now until now, the development of Maker is in the hands of the community, not the creators. According to the information from the official website, you can see that a large team of specialists worked on the project: technical director - Andy Milenius, lead scientist Nikolai Mushegyan and head - Soren Peter Nelson, they act as coordinators of a group of almost 40 developers, sponsors and PR staff.

How Maker works?

Maker (MKR) is a smart contract platform built on the Ethereum blockchain, which aims to solve the problems of volatility on the cryptocurrency market - it is the basis of a new generation banking system, which is built on the principle of blockchain, which provides faster and easier cross-border payments and peer-to-peer transactions. The goal of the project is to support and stabilize the dai stablecoin, a collateralized cryptocurrency - a digital currency that retains its consumer power, as its price is stable against the US dollar, and Maker can achieve this through its unique smart contracts.

In order to create DAI, clients must deposit collateral assets, which are stored in a CDP (collateralized debt position). Further, when the DAI generation process occurs, the user accumulates debt, which effectively blocks the user's previously stored collateral assets inside the CDP, until the user can repay the debt and remove the collateral. You also need to be aware that the value of collateral is consistently higher than the price of the generated DAI (and the value of the accumulated debt). Initially, MakerDAO traded in such a way that only ETH was allowed to be deposited as a guarantee (collateral), while the collateral rate was 150%. For example: on the security of ETH in the amount of $150, it is possible to issue DAI in total only $100 dollars. In 2022, MakerDAO became the first to accept shares of public companies as a deposit.

Token Maker and its benefits

Now that we have learned in detail the essence of DAI and how it works, let's talk in more detail about Maker (MKR) cryptocurrency. Since MKR is not a stablecoin compared to DAI, and consequently affects price volatility, this does not prevent the coin from playing a major role in the mechanism and collateral. The MKR token plays three main roles: it acts as a utility token, a managerial token, and a recapitalization resource. The utility moment of MKR is set on the idea that only one token is used as settlement for CDP products to found Dai. The management aspect allows MKR owners to vote for any decision to change the network, or to create such proposals on their own. As of today, the circulating supply is 977,631 MKR coins and each time they are used as a settlement, they are burned. As more MKR burns each time, its value increases and transaction time decreases.

How to buy Maker?

As of today, the Maker cryptocurrency price is $837.06 with a daily trading volume of $87,646,504. At the time of writing, the CoinMarketCap rating is #54, with a market capitalization of $823,966,569.

The most popular exchanges to trade Maker currently are: Binance, Deepcoin, OKX, BingX.

Most users, when buying or exchanging cryptocurrencies, still choose crypto exchangers, because they can complete a transaction much faster than crypto exchanges. One of these services is Coin24.com.ua. How to make an exchange and what are the directions of exchanges can be found on the main page of the site.

Analysts' forecasts for the future. TOP 5 reasons why you should invest in Maker (MKR)

Cryptocurrency analysts predict that under the current conditions, MKR is likely to rise in the next two years and it is possible that the price will exceed the $10,000 mark by 2025. Following the forecast, you have the opportunity to earn about $7,000 per token by investing in mkr crypto maker now. That is, only 10 tokens, which cost an approximate amount of $33,000, will bring a profit of more than $100,000 in just three years.

But we must also remember that the crypto market is unstable, take a look at the same bitcoin. In any case, the right remains with you and you can risk owning several Maker tokens and watch their progress. If you think about it, then here are a few more reasons for the positive side of investing in a token:

• Maker decentralization. The main one of the aspects that gives all participants equal rights and the opportunity to influence in any blockchain.
• Secure protocol. MKR is one of the most secure protocols in the DeFi market. The protocol has invested in various online security measures, such as two-factor verification, to keep hackers at bay. MKR has had quite a few problems, but its developers have gone to great lengths to keep the network secure.
• Interest lending. It is Maker that provides the lending protocol where DAI holders lend to others and earn interest on lending. A big plus is that the savings rate side will help you earn interest just by holding DAI on the platform. Also, at any time you can convert DAI into other assets and earn.
• Stability. The Maker Protocol uses a unique strategy to balance the supply and demand of its tokens.
• Potential. Maker is one of the biggest contributors to the DeFi industry, accounting for nearly half of that market.

As for the general forecast for the MKR cryptocurrency, it is quite optimistic and the price will rise over the next few years. But before you decide that Maker is a safe investment, you need to understand that a number of uncertainties may emerge in the near future and this could easily change MKR price predictions.

Crypto regulation has been in question for ten years to this day, only when users see stability in this matter, then this can become either an advantage or a disadvantage of Maker, since it is rather prone to strict regulation than a significant part of other cryptocurrencies. The token operates in the DeFi zone, which has the ability to control and explore much more precisely. Maker will continue to compete with its opponents in the coming years. This token is suitable as an investment, protected from significant changes in the rate, as well as for a simple means of payment in the Ethereum ecosystem.