Maple Crypto Price Predictions
Have you heard of Maple Finance?
In decentralised finance, putting up more money than you borrow is an inefficient use of company money. But it’s the standard way DeFi works. Why? Because DeFi doesn’t have “underwriting”, which is a negotiation process between a borrower and a lender to negotiate a loan. This takes into account the financial circumstances of the borrower and their likelihood of paying the money back.
Maple Finance decided that to move corporate lending to the blockchain, throwing the baby out with the bathwater was a bad idea: not all companies are created equal. So they created a system of lending run by experts but using pools of money from regular investors.
One of those pools is their USDC pool: a pool into which regular investors can put their premium US Dollar stablecoins for 90 days at a time and earn interest. You can invest easily in Maple USDC with AQRU.
But there’s another aspect: the Maple token (MPL). This token (which can also be bought and sold at exchanges, and so has a financial life of its own) keeps the system running. People who stake their MPL to Maple’s liquidity pool earn a yield on that, and that pool exists to protect the main pools from bad loans (if someone defaults on their loan, that amount is recovered by selling MPL tokens).
MPL tokens also provide “governance rights”, so holders can help run the blockchain.
As of writing, the MPL token is worth $14.60.
On January 25th 2022, major exchange Coinbase announced it was listing Maple: the price was around $14 on that day. After a few days, while investors transferred their tokens into the exchange, the price began to rise, and on the 9th of February 2022, when trading started, it continued to rise until April. The extra volume caused by the token being available on an exchange heavily aimed at retail consumers saw MPL peak at around $64 in the second week of April 2022.
Expert predictions of the Maple price on that same day were bullish, if conservative. “Wallet Investor” provided a one-year forecast of $22.59, and a five-year of $69.09 (the coin almost hit its five-year target in three months). Digitalcoin’s forecasts were all below its April peak.
So, Maple outperformed the predictions thanks to Coinbase, at least until it got hit by the crash at the beginning of May 2022 (to $22) and further suffered in June 2022 (to $14). This illustrates that while predictions of high prices are flattering, even the “experts” are just guessing and none of their models takes into account ecosystem failures that affect the whole market or even ecosystem failures that might weaken the business model of a coin (such as the DeFi market becoming more challenging).
So, are there any current predictions for Maple?
Well, yes. There always are. Here’s one set from Price Prediction – make sure you have extra salt ready, you’ll need lots of pinches of it.
If nothing else, this indicates that crypto should be seen as a long-term investment in coins you have faith in. If Maple gets through the current problems in DeFi and more traditional finance moves to the blockchain thanks to the Ethereum 2.0 upgrade, MPL may have a bright future.
Don’t forget that AQRU’s Maple USDC and Maple ETH yield accounts are offering some of the best returns in crypto right now and you can invest in them through the AQRU app: just visit the website or download the app from the App Store or Google Play. There’s a 90-day lock-in for funds invested in Maple pools.