MakerDAO (MKR) has experienced significant developments in recent days. A step taken by the co-founder has become a focal point in the cryptocurrency market. However, data reveals that the event was not as minor as initially thought. The co-founder’s move indicated that other whales might also be exiting the market.
MKR Coin Comments
According to data provided by Lookonchain, a notable transaction occurred over the last four days specifically involving MKR. In this transaction, a whale sold 2,658 MKR at a price of $2,022 each.
Following the sale, MKR’s price experienced a noticeable movement, with a 7.6% decrease. Despite the massive transaction, the whale still holds 2,007 MKR, valued at $3.9 million.
The sale in question resembles a transaction made by a Maker co-founder, who recently sold $4.5 million worth of MKR.
Such consecutive sales could trigger larger sell-offs for MKR and exacerbate the negative sentiment surrounding the altcoin.
These sales by investors could fuel concern among significant market participants. They may also cast doubt on future price movements of MKR and the market’s overall sentiment. A closer examination reveals that MKR’s weighted sentiment reflects this issue more clearly.
The decline in weighted sentiment has shed light on the market. Many social media users supporting the altcoin appeared to be entering a downward trend against MKR. Alongside the price drop, the network’s growth also seems to have taken a significant hit.
An even worse situation for MKR is the perspective of investors. It was observed that there was no effort by new addresses to accumulate MKR, and the correction in MKR was not seen as a buying opportunity at lower prices by investors. This lack of interest could further drive down MKR’s price. Moreover, MKR’s trading volume has also decreased.
Current State of Stablecoins
Despite the sales by the company’s co-founder and a whale, there are investors who believe that this has not undermined confidence in the MakerDAO ecosystem. It appears that the MKR sales were followed by purchases of DAI.
Despite the accumulation of DAI, there has not been a significant change in the market value of the stablecoin. Meanwhile, strong stablecoins in the market such as USDC and USDT continued to see noticeable growth in market value, while the market value of DAI remained stable.
