Maker Price Prediction – MKR Eyes $1600 Ahead of Major Upgrade

Highlights:

• Maker bulls remain strong despite more than a month of gains
• Bullish momentum driven by upcoming upgrade from Maker to Sky
• Upgrade could boost prices by reducing liquidity fragmentation

Maker (MKR) is experiencing modest gains today, reflecting higher bullish sentiment across the cryptocurrency ecosystem. At the time of reporting, MKR was trading at $1,537.91, marking a 1.43% increase. The MKR price uptick is in sync with recently observed positive trends in Bitcoin and other top-tier cryptocurrencies. As Bitcoin continues to trade in the green, altcoins such as Maker are gaining from boosted investor trust.

Proposal to Introduce a Replacement Maker Token Called SKY

What distinguishes MKR today, however, is the market optimism and the significant governance change for the protocol. The DeFi lending platform formerly known as MakerDAO, Sky, has put forth a proposal that could considerably impact MKR.

Sky Proposes Replacing MKR with SKY Token

The DeFi platform plans a one-way switch starting mid-May, bringing staking rewards, faster exchange support, and a new era of decentralized governance.

MKR still rises as traders eye the transition.

Details:… pic.twitter.com/CyMzcJynHz

— The Crypto Insight (@DeCryptoInsight) May 2, 2025

Yesterday, May 1, the Sky DAO published a proposal to replace MKR with an SKY token for governance. Under the proposal, the SKY token will serve as the sole governance asset within the Sky ecosystem. Should the DAO accept the proposal, the transition of MKR to SKY might take place between May 15 and May 19. After this date, downgrading back to MKR would be permanently disabled, effectively rendering MKR obsolete within the protocol. 

Exchanges Are Anticipated to Adopt FREE SKY Sooner

Christensen noted that exchanges were reluctant to adopt SKY due to concerns regarding liquidity fragmentation. With the downgrade option eliminated, exchanges are expected to adopt SKY more quickly. 

The proposal implements a fine design for users who wish to delay migrating to a new token version, encouraging upgrades due to prompt migration. Starting September 18, a 1% penalty for delayed upgrades will take effect for MKR holders converting to SKY. This penalty is set to increase every three months and restrict the amount of SKY tokens late adopters receive.

SKY PUSHES FINAL MAKER UPGRADE: NEW TOKEN, STAKING COMING SOON

– @SkyEcosystem , the DeFi lender formerly known as Maker, is moving to drop MKR for good.

Here Are The Details:

– On May 1, it pitched a major protocol upgrade: replace MKR with SKY as the official governance… pic.twitter.com/Qn7IQmCoUR

— BSCN (@BSCNews) May 2, 2025

SKY Staking to Launch Following Upgrade

The Sky DAO wants to implement staking for SKY while swapping the governance token. This change marks the beginning of a new era focused on long-term participation and retention of tokens within the ecosystem.

A new governance proposal has been submitted to finalize the upgrade from MKR to SKY.

It would enable SKY Staking, activating USDS rewards for SKY holders. If approved, this could be one of the final steps toward a transition to zero fixed costs by the end of 2025 directing… pic.twitter.com/aq9zm24b4H

— Sky (@SkyEcosystem) April 30, 2025

The incentives for staking will come from the stablecoin inflows generated by Sky’s USDS. Christensen stated these incentives will be activated about two to three weeks after the governance contract upgrade. The Sky-Staking reward system will have a 50% splitter rate, implying that half the income from the protocol will be returned to the income SKY holders. This shift supports Sky’s vision of stripping the protocol’s operational costs to zero by 2025. This means more of the DAO’s income could be distributed through staking. 

Liquidations to Be Withheld During Maker to Sky Transition

Sky liquidations will be paused during the transition. This is meant to mitigate risk and provide stability during the implementation of the new governance system. This proposal is one of the last milestones in the transformation journey of the MakerDAO protocol into Sky. If executed well, it would profoundly change the way the protocol functions and how value is apportioned among stakeholders.

Technical Analysis – Maker Bulls Gaining Momentum

Since its bullish reversal on March 11, Maker has been on a bull trend, making higher lows. If the trend continues, Maker could rally to $1648.3 in the short term. 

On the other hand, if bulls show exhaustion and bears regain control, then a correction to the $1358 support could follow. 

Recap

With the evolution of Sky, this transition is likely a point of reference for other DeFi platforms contemplating similar transformations. The next few weeks will determine whether Sky’s vision can commence its journey and if MKR holders are willing to take the plunge.