TL;DR
- MakerDAO faces significant token sales, including a sale of 2,658 MKR by a whale, resulting in a 7.6% drop in the price of MKR.
- Despite the sale, the whale still holds 2,007 MKR ($3.9 million), creating uncertainty over investors’ decision to hold or sell.
- The negative sentiment is reflected on social media, but the accumulation of DAI suggests a search for stability, indicating that the sale of MKR does not reflect a lack of confidence in MakerDAO.
In recent days, MakerDAO (MKR) has been in the eye of the storm due to significant token sales by whales, including one of the co-founders.
The whale in question downloaded 2,658 MKR in a span of four days, obtaining 5.37 million DAI at an average price of $2,022 per MKR, which has generated a 7.6% decrease in the price of MKR.
These whale movements have created an atmosphere of uncertainty around MKR.
Data from Lookonchain reveals that despite the sell-off, the whale still owns 2,007 MKR valued at $3.9 million.
A whale dumped 2,658 $MKR for 5.37M $DAI at an average price of $2,022 in the past 4 days.
And the price of $MKR has dropped by 7.6% since the whale began dumping.
The whale still holds 2,007 $MKR ($3.9M), be careful of selling again!https://t.co/4Inn58tYVb pic.twitter.com/uGhe38Wb7P
— Lookonchain (@lookonchain) January 29, 2024
This raises the crucial question: Should investors hold onto their MKR or follow the whales lead and sell?
Negative perception around MKR has increased, exacerbated by the sale of a large number of tokens by a key figure in the foundation.
This phenomenon has raised doubts about MakerDAO price trajectory and market confidence
Sentiment on social media has seen a significant decline, reflecting a bearish outlook towards MKR.
In a look through Etherscan, it is revealed that the maximum total supply of Maker (MKR) amounts to 977,631 tokens.
The number of MKR holders stands at 99,115 representing 0.018% of the total.
Market-wise, the current price of MKR is $1,998.36, equivalent to 0.864769 ETH, up 2.66%.
The fully diluted market capitalization reaches $1,953,658,759 while the market capitalization of the circulating supply stands at $1,841,752,322.
This decline in sentiment has been accompanied by a marked decline in network growth, indicating a lack of interest from new investors in acquiring MKR during the price correction.
Further analysis shows that despite the MKR sell-off, there is substantial DAI accumulation.
This move from MKR to DAI could indicate a search for stability amid the current uncertainty.
It is crucial to note that although whales have been selling MKR, this does not necessarily reflect a lack of faith in the MakerDAO ecosystem.
The token sale has been offset by the accumulation of DAI, but surprisingly, no significant change has been observed in the market capital of this stablecoin compared to others, such as USDC and USDT, which continue to see growth.
In this context, investors should carefully evaluate the available information and consider the possible short- and long-term impacts.
The warning to be cautious about further selling suggests that the community is keeping an eye on possible additional moves that could further impact the price of MKR.
The evolving situation will require constant observation to better understand the resilience and adaptability of the MakerDAO ecosystem in the face of these current challenges.
