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- MakerDAO is currently the third biggest DeFi protocol in the world, holding $8.49 billion worth of assets locked.
- The DAI stablecoin issuer has a PE ratio of 13, making it a solid investment with a potential of $105 million in profits next year.
- Maker price rose by more than 8% during the intraday trading hours in the past day, failing to close above the three-month-old barrier.
MakerDAO has always maintained a strong footing in the Decentralized Finance (DeFi) space for the longest time. The protocol also has a substantial dominance in the crypto market thanks to its native token MKR and stablecoin DAI. These reasons have invoked optimism from Messari that the company will reign in sustainable profits next year.
MakerDAO may hit a ton
According to crypto market intelligence data provider Messari's Crypto Theses 2024, MakerDAO is likely on track to generate profits worth $105 million in the coming year. These inferences are based on the estimated revenue and profits assuming 50% growth in DAI supply and a reduction of 0.5% in interest rates by the end of 2024.
MakerDAO 2024 profits estimation
These estimations do make sense, given that MakerDAO, as a company, currently has a forward PE ratio of 13. The price–earnings ratio is the ratio of a company's share price to the company's earnings per share. This ratio is used for valuing companies and to find out whether they are overvalued or undervalued.
This makes MakerDAO a likely profitable investment, as a PE ratio under 20 is considered to be better than a higher ratio.
Maker price almost marks a new high
Maker price rallied by more than 8% during the intraday trading hours yesterday, breaching the $1,600 mark before coming back down below the key resistance level of $1,566. This three-month-old barrier has been holding MKR back from charting new year-to-date highs.
A flip of this resistance into support would hint at a bullish outcome for Maker price going forward. MKR could likely push beyond $1,600 heading into 2024, as hinted at by the price indicators Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).
MKR/USD 1-day chart
However, if the breach fails again and the bullish momentum wears off, a decline to $1,500 is likely, which would bring MKR to $1,400, coinciding with the 50-day Exponential Moving Average and invalidating the bullish thesis.