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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.