Maker (MKR) Makes Crypto History: $2K Breached – Can DeFi Reach For More?

Maker DAO’s MKR has been a dominant force in real-world asset (RWA) transactions within decentralized finance (DeFi), boasting a daily average of $94.5 million in RWA-related transactions in the second week of January. Despite this impressive transaction volume, there are underlying challenges that investors need to consider.

Maker Transaction Volume Dominance

MKR stands out with its substantial RWA transaction volume, signaling ongoing activity and interest in the MakerDAO ecosystem amid market volatility. This is a positive indicator for the protocol.

MakerDAO’s strategic move towards tokenized T-Bills has proven successful, contributing over half of the protocol’s fee revenue. This diversification provides a potential growth engine, offering a positive aspect amid other challenges.

The Concern: Decline In RWA Activity

However, the overall picture for RWA on MakerDAO is not entirely positive. The total value locked (TVL) in RWA has dropped by 33% since October, raising concerns about waning investor interest in real-world asset integration on the platform.

Investor sentiment mirrors the decline in TVL, with a substantial $871 million withdrawn from Maker’s RWA offerings in the past three months. This suggests potential concerns about specific RWA deals or broader market volatility.

Despite positive sentiment and demand for MKR, questions arise about the sustainability of this momentum if the RWA decline persists. The future of MKR as the RWA leader is uncertain, and the potential ripple effects remain a key consideration.

Revival Or Paradigm Shift?

The capital flight may be a temporary setback or indicative of a broader shift in investor preferences towards different RWA platforms or asset classes. Time will reveal whether MakerDAO can regain investor confidence and revive its RWA sector.

MKR was trading at $2,015 at the time of publication, based on CoinMarketCap data. The demand for the altcoin has increased as the year has progressed, with the majority of the attitude being favorable.

The challenges and opportunities of RWAs in DeFi are encapsulated in MakerDAO’s story. While high transaction volume and innovative T-Bill offerings show promise, the significant decline in RWA inflows raises questions about the protocol’s long-term sustainability.

The success of RWAs on MakerDAO and in DeFi as a whole hinges on finding the right balance between innovation, risk management, and building trust with investors. MakerDAO faces the challenge of rewriting the RWA narrative or potentially losing its prominence in the evolving landscape of real-world assets in DeFi.

Featured image from Shutterstock

Uniswap Unveils New Security Feature: Will It Boost UNI Demand?

Uniswap Labs, the developer of Uniswap–a decentralized exchange, has introduced a new security feature called Permit2. Taking to X on January 18, the DEX developer said this update addresses the “infinite token allowances” vulnerability that hackers can exploit. This flaw risked user funds, and the new feature is meant to resolve this concern.

Uniswap Sealing Infinite Token Allowance Risks

In crypto, especially among decentralized finance (DeFi) protocols, the “token allowance” is permission initiated by the user granting smart contracts access to tokens. From there, assets can be moved.

With this permission, it becomes possible for users to interact with dapps, chiefly protocols that utilize user funds. Some of these dapps include, for instance, decentralized exchanges like Uniswap or lending platforms like Aave or Maker. 

While useful, “token allowance” can be exploited by hackers via “infinite token allowance,” where hackers can infinitely access and illegally withdraw funds from wallets, draining them as a result. Once a wallet has been compromised, it can be drained without the user’s knowledge since the compromised code already permits the hacker to move funds.

Aware of this risk, Uniswap Labs is introducing the open-source Permit2 as a solution. The tool, the DEX developer says, will give users more protection and, more importantly, control over digital assets.

A key feature of Permit2 is that users can set time limits on token approvals. Third parties can only access funds within a specific period in this arrangement. 

Additionally, the tool introduces a reusable token approval for simplicity. With this feature, end users don’t have to repeatedly grant access to their funds for each transaction. On the gas-saving fronts, Uniswap Labs say Permit2 also utilizes signature-based approvals and transfers. This means the tool can reduce gas fees when users transfer tokens.

Uniswap Building, UNI Remains Under Pressure

This enhancement precedes the upcoming release of Uniswap v4, which introduces Hooks. This new feature provides developers with more flexibility and control over their applications.

Analysts say the launch of Uniswap v4 and Uniswap Labs’ continuous enhancement to improve security might cement the DEX’s position.

Uniswap TVL | Source: DeFiLlama

According to DeFiLlama data, Uniswap has managed over $4.4 billion worth of assets. Even so, UNI prices continue to struggle. 

UNI price trending upward on the daily chart | Source: UNIUSDT on Binance, TradingView

Looking at the daily chart, UNI has resistance at around $8.1 and is currently down roughly 20% from December highs. Sharp losses below $6 might trigger a sell-off, forcing the token towards $4.5 or lower. 

Whales Accumulating Maker And Aave, Path To 2024 Highs?

On-chain data suggests that whales are accumulating large amounts of Maker (MKR) and Aave (AAVE), two leading decentralized finance (DeFi) tokens. This accumulation trend coincides with a broader cooling-off period in the crypto scene days after the United States Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs. 

Whales Accumulate MKR And AAVE

According to ScopeScan data, Anchorage Digital, a digital asset custody firm, purchased a significant amount of MKR on January 15. The firm acquired 12,103 MKR tokens, valued at approximately $24.7 million, from Coinbase, a leading crypto exchange in the United States. 

Two whales, “0xbb5f” and “0x4a7,” also accumulated large quantities of MKR and AAVE. Specifically, “0xbb5f” bought 50,000 AAVE and 2,452 MKR worth around $5.03 million and $4.95 million from Binance, a leading cryptocurrency exchange. Meanwhile, 0x4a7 purchased 39,000 AAVE and 2,350 MKR, valued at approximately $3.95 million and $4.75 million, also from Binance.

Whales accumulating Maker and Aave | Source: Scopescan

These whale purchases signal a strong belief in the long-term potential of MKR and AAVE. Maker and Aave are two of the world’s leading decentralized lending and borrowing protocols across DeFi. MKR serves as the governance token for MakerDAO, which also manages the DAI decentralized stablecoin. On the other hand, AAVE is the governance token of Aave, a top decentralized lending platform. 

According to the latest DeFiLlama data, Maker and Aave have total value locked (TVL) of over $8.4 billion and $7.3 billion, respectively.

Top DeFi protocols | Source: DeFiLlama

Notably, whales are accumulating MKR and AAVE when the DeFi scene is recovering following the sharp contraction from 2022. The industry manages over $56 billion, with Ethereum hosting more liquid DeFi protocols, including Lido DAO when writing in mid-January 2024. 

Will Maker and Aave Rally To New 2024 Highs On Recovering DeFi?

Last year, MKR and AAVE were among the top-performing DeFi tokens, with MKR rising by over 200% and AAVE appreciating by more than 150%. Protocol-specific fundamentals, including the launch of Spark in Maker, partly drove this strong performance.

Aave launched the GHO stablecoin and the Lens protocol on the Ethereum sidechain, Polygon. Moreover, expectations of the spot Bitcoin ETF forced aggressive traders to consider top DeFi protocols, lifting altcoins.

Maker price trending upward on the daily chart | Source: MKRUSDT on Binance, TradingView

As whales accumulate, there is more headroom for these tokens to grow. Presently, AAVE and MKR are lower, based on their respective performance in the daily chart. However, overly, the uptrend remains. To illustrate, MKR is within a bullish breakout formation with a critical support level of around $1,560. Any surge past $2,300 might ignite demand, lifting the token to new 2024 highs.

Maker Market Heats Up: Over 600 Addresses Complete MKR Trades In Single Day

The starting point of 2024 has a positive outlook for the Maker (MKR) coin, suggesting that the year may be productive. Activity has increased, according to on-chain data, indicating a potential positive trend.

Since the start of the year, the number of active addresses on a daily basis—a crucial indicator of user engagement—has increased significantly.

Presently, there are more than 600 addresses trading MKR, which is a 4% rise from the original 590. This increase in involvement suggests that there is increasing momentum and interest in the token.

Moreover, since the beginning of the year, there has been an over 5% increase in the establishment of new addresses only for MKR trading. This inflow of new players gives the ecosystem more room to flourish and more liquidity.

2024 is off to a good start for MakerDAO, the driving force behind the DAI stablecoin in the decentralized finance (DeFi) space.

Analysts are upbeat, projecting steady returns and even calling it a safe pick given the volatile state of the cryptocurrency market. Still, let’s examine this more closely before jumping on the MKR bandwagon.

One of MakerDAO’s strongest points is its mature ecosystem. A key component of DeFi lending and borrowing is the MKR token, which controls the DAI stablecoin.

This mutually advantageous association has bestowed MakerDAO with considerable sway and a foothold in the market. However, to attribute its future exclusively to the Bitcoin ETF decision, as some contend, offers an inadequate perspective.

Although the crypto markets could benefit from an authorized Bitcoin ETF, it’s important to understand how complex and interwoven the sector is.

Regulations, the general use of DeFi, and even rivals’ actions impact MakerDAO’s trajectory. Ignoring these things could result in unrealistic expectations.

According to Coinglass data, there has been a notable spike in liquidations as a result of Maker’s hike from a minimum of $1,826 to a maximum of $1,928.

The sudden surge in MKR’s value has forced the liquidation of more than $500,000 worth of short bets, defying the sellers’ gloomy projections.

There could be both good and negative effects on Maker’s pricing if the number of profitable addresses rises. Some 74% of addresses, or 69,400 addresses, are in profit, which is a two-year high, according to IntoTheBlock data.

This increase could lift buying pressure for the cryptocurrency as hopeful Maker holders may want to stockpile more tokens in expectation of future price improvements.

As the Maker market witnesses a surge with over 600 addresses completing MKR trades in a single day, the momentum appears robust and promising. This heightened activity signifies growing interest and participation in the MKR ecosystem.

Featured image from Freepik

After A 170% Spike, Is The Maker (MKR) Dream Rally Over?

After rallying over 170% from June 2023 lows, there are signs that Maker (MKR) bulls are losing momentum, looking at price action and decisions by various whales acting via an intermediary. At spot rates, MKR is changing hands at near 2023 highs but is down 16% from October highs. 

Maker (MKR) Is Selling Off: The Bull Run Is Over?

MKR is dumping at an unexpectedly faster pace, reversing gains posted in early Q4 2023, a concern. According to The Data Nerd, Falcon X sent 5,690 MKR worth $8.52 million to multiple exchanges, mainly OKX and Binance, at an average price of $1,497. 

Falcon X deposits MKR to exchanges| Source: The Data Nerd on X

Typically, whenever crypto whales begin sending tokens to centralized ramps, as currently is the case, it can be interpreted as bearish. That whales are moving their coins to exchanges could indicate that they are planning to liquidate and exit their position. Subsequently, this can dent sentiment, forcing the token to dump.  

However, the timeliness of the transfer also matters. In some instances, tokens can be moved to exchanges and interpreted as bullish. This is because, depending on the situation, whales could move them to provide liquidity for other traders.

This can be the case with Falcon X. The platform provides institutional investors access to liquidity and execution services. Notably, Falcon X has, in the past, been used by other crypto exchanges and liquidity providers to offer other services. Since it acts on behalf of institutions and whales, it cannot be ascertained which of its clients is selling MKR. 

As of October 27, The Data Nerd statistics show that the platform holds 10,150 MKR worth $14.17 million at spot rates. Following the transfer, the tracker also shows that MKR is down 4%.

The “End Game” Pumps MKR To New Highs, A Pull Back Incoming?

Presently, MKR remains under pressure. As mentioned earlier, the token, though in an uptrend, rallying 170% in four months, is down 15% from October’s peaks. At the same time, there is a double top, a technical formation that may signal a local top.

Maker price on October 27| Source: MKRUSDT on Binance, TradingView

This pattern will only be invalidated if there is a sharp expansion above $1,650. Conversely, losses below $1,350 at the back of high participation levels could catalyze the sell-off.

In May 2023, MakerDAO, the issuer of MKR–the governance token of the underlying borrowing and lending protocol, announced the launch of the “End Game.” Herein, the protocol plans to deploy on its independent blockchain, introduce new features, and launch two tokens. 

In addition, Maker has introduced a smart burn mechanism that involves purchasing MKR tokens from the open market and burning them without needing to close any collateralized debt positions (CDPs).

Crypto Watchlist For October: Altcoins To Keep On Your Radar

As the dynamic crypto landscape evolves, attention is turning not only to the giants but increasingly to emerging altcoins that show promise and innovation. October is shaping up to be a pivotal month for a select group of these altcoins, with potential frontrunners positioning themselves. Here are our top 4 altcoins for October.

Arbitrum (ARB)

Arbitrum (ARB) is thrust into the limelight as it inaugurates its Short Term Incentive Program (STIP), positioning 50 million ARB to be siphoned into protocols residing within its ecosystem. The maneuver is predictive of a substantial acceleration in liquidity, reminiscent of Optimism’s grant’s influential impact which witnessed the Total Value Locked (TVL) catapulting from $300 million to $1 billion during its grant distribution period, as highlighted by DeFi researcher Thor Hartvigsen.

In total, over 105 applications have already been funneled into the Arbitrum STIP, predominantly from DeFi applications, and notably DEXes which are commandeering the dominant category followed by yield aggregators and lending markets.

At press time, ARB was trading at $0.9295 after the price was rejected at the 38.2% Fibonacci retracement level ($0.9721). A break above this resistance is crucial. In particular, it is important for ARB not to fall below the descending trendline (black) again, which was breached on Sunday.

Arbitrum price

Solana (SOL)

Hartvigsen emphasized the potential he sees in SOL, noting, “Growing DeFi ecosystem and a very strong/vocal community. Solana has established itself as more than just another L1 as it has significant scaling benefits with product market fit.” This assertion further manifests with projects like Eclipse undertaking ambitious endeavors, specifically, “building an Ethereum L2 with the Solana VM.” Such innovations not only underscore Solana’s rising importance but also demonstrate its practicality and adaptability in the continuously evolving DeFi landscape.

In the last 22 days, the SOL price has increased by almost 40%, and the sentiment around Solana is extremely positive. As the latest CoinShares weekly report shows, SOL has been one of the most popular investments among digital asset funds around the world in recent weeks.

The Solana (SOL) price broke above the 200-day EMA on Sunday and also managed to cross the 38.2% Fibonacci retracement level. Assuming a successful retest, the SOL price could target the $26.63 and $32.35 levels.

Solana price

Radiant Capital (RDNT)

Radiant Capital’s momentum in the crypto sphere took an intentional pause with the deferral of its Ethereum mainnet deployment from October 3rd to the 15th. Addressing this decision, Radiant Capital cited their unwavering commitment to quality, remarking: “During the final stages of testing for Ethereum mainnet deployment, we’ve identified opportunities for significant gas optimizations. It’s imperative to ensure competitive gas costs to deliver an optimal user experience.”

Beyond the temporary shift in launch timelines, the organization’s team remains palpable. Thor Hartvigsen reflected on Radiant Capital’s prowess, stating, “RDNT – Already leading the lending/borrowing market on Arbitrum. Expecting TVL to rise from the cross chain expansion. Expecting TVL to rise from the cross chain expansion. Further: Arbitrum STIP proposal to receive 3.36 million ARB aimed at ecosystem growth.”

RDNT saw a strong drawdown of close to 62% after the all-time high at $0.4956 on April 15. However, after the historical low at $0.1905, RDNT has already shown a strong reaction. Should the price break above the 23.6% Fibonacci retracement level at $0.2625, it could be interpreted as an indication of a breakout from the downtrend.

Radiant RDNT

Maker (MKR)

Maker (MKR) has been generating significant attention in the crypto community, primarily due to its impressive rally in recent weeks. Central to Maker’s rise is its strong financial performance. Hartvigsen illuminates this by noting: “Maker is the largest revenue-generating protocol in DeFi with a current annualized revenue of $193m!” This revenue is primarily driven by interest accrued from DAI minters, with a significant proportion coming from Real World Assets (RWAs).

As he further elaborates, “Currently, 53% of all DAI collateral comes from RWAs such as US t-bills paying out nearly 5% APY. Roughly 63% of the $193m in annualized revenue comes from the RWA collateral.”

But what has precipitated this uptick in MKR’s valuation? Hartvigsen attributes it to two primary factors: “1) More of the collateral as RWA (and high US interest rates) and 2) A growing DAI supply.” He emphasizes the symbiotic relationship between Maker’s revenue and DAI’s market cap, stating that “Maker revenue depends primarily on the total market cap of DAI as the collateral backing this stablecoin is what generates fees.”

On the horizon, MKR’s prospects appear even more promising. Hartvigsen lists several catalysts that could further propel its growth. One notable highlight is the potential impact of DAI’s ongoing expansion: “If the DAI supply can continue to grow, the Maker revenue will continue to grow which most likely will impact the price positively.”

Additionally, forthcoming developments, including “a MKR 1:12000 token split,” a complete rebranding initiative, and the anticipated launch of subDAOs, are set to infuse MKR with enhanced utility and potentially greater demand in the market. As he concludes, these changes will enable “MKR holders to stake MKR to farm these new subDAO tokens which will create additional token utility.”

After the MKR price crossed the 200-day EMA at 1,110 three weeks ago, the odds are good that the rally will continue. A possible target could be the 23.6% Fibonacci retracement level at $1,888.

Maker MKR

Maker (MKR) Inks 20% Price Advance, Leads Top 50 Coins Today

Maker (MKR) is currently making waves in the cryptocurrency market with an impressive surge in value. Over the past month, MKR has exhibited remarkable growth, experiencing a substantial 40% increase in price. Today, the crypto flexes its muscle and leads the roster of top 50 coins.

One noteworthy development amidst this rally is the strategic maneuver executed by a prominent crypto whale. This entity recently deposited 3,527 MKR tokens on the Binance exchange, capitalizing on the upward trajectory of MKR’s price. 

This shrewd move has boosted the whale’s total MKR holdings to an impressive 10,000 tokens, resulting in a staggering $5.12 million in profits. This remarkable increase in value underscores the attractiveness of MKR as a lucrative investment in the current crypto landscape.

Maker: Impressive Metrics And Bullish Indicators

As of the latest data from CoinGecko, MKR is currently trading at $1,553, reflecting a notable 4.1% gain in the past 24 hours and an impressive seven-day surge of 20%. What sets this rally apart is the consistency in MKR’s price patterns, characterized by higher highs and higher lows, a clear indicator of a bullish trend in the market. 

The Relative Strength Index (RSI), according to recent price analysis, lends further credence to this bullish sentiment, with a reading of 79.34, indicating robust bullish momentum surrounding the MKR token.

In addition to the price surge, data provided by Santiment reveals that the number of active MKR addresses has reached a 10-week high. This not only signifies an influx of new users into the Maker ecosystem but also highlights heightened activity among existing supporters of the protocol. 

MKR Breaches $1,500 Barrier

Interestingly, this surge in activity coincided with MKR’s price surpassing the $1,500 threshold, suggesting a correlation between price action and increased user engagement.

However, amid the optimism, Santiment issues a cautionary note for MKR investors. They emphasize the importance of vigilance concerning the current influx of tokens to exchanges, as this trend may foreshadow a potential market correction in the short term.

While the current bullish momentum is undeniable, investors should remain cautious and mindful of the potential market dynamics in the coming days.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

Maker (MKR) Rockets To $1,500 With 15% Surge, Will This Run Continue?

The Maker token, MKR, has managed to break the $1,500 level with a sharp 15% rally as on-chain data shows MKR has seen high address activity recently.

Maker Has Outperformed Top Coins With 15% Rally In Past Week

While giants like Bitcoin have struggled recently, MKR has proven to be different as the coin has observed an impressive run of bullish momentum. Following the latest leg up in the asset’s rally, it has surged past the $1,500 level, a feat it hasn’t replicated since May 2022, almost a year and a half ago now.

Related Reading: Bitcoin Bearish Signal: Long-Term Holders Deposit To Exchanges

The below chart shows what the asset’s recent rally has looked like:

Maker Price Chart

Out of the top 100 cryptocurrencies by market cap, only Chainlink (LINK) and Curve (CRV) have seen better returns than Maker’s 15% gains during the past week.

Even these two assets haven’t seen bullish momentum as consistent as MKR in the past month, though, as MKR’s superb 42% profits in the period notably outshine theirs.

Maker Active Addresses Have Hit A 10-Week High

According to data from the on-chain analytics firm Santiment, this sharp run in MKR has come alongside a surge in the cryptocurrency’s “active addresses” metric.

This indicator keeps track of the daily total number of unique Maker addresses that are taking part in some kind of transaction activity on the blockchain. This metric’s value can simply be looked at as the amount of traffic that the network is receiving every day.

When the indicator has high values, it means that a large number of users are participating in the trading activity of the asset. Such a trend implies that interest in the coin is high currently.

Now, here is a chart that shows how the active addresses metric has changed for MKR during the past month:

Maker Active Addresses

From the graph, it’s visible that the Maker active addresses have climbed up alongside the rally in the asset’s price. After the latest increase in the indicator, its value has hit 651, which is the highest observed in around 10 weeks.

Generally, for any surge to be sustainable, it requires continued participation from a large amount of traders. Rallies that aren’t accompanied by a sufficient rise in user activity usually run out of steam before long.

Since the latest Maker surge has seen an increasing number of addresses becoming active, signs could be looking good for its sustainability. As the price continues its run, though, some investors might be tempted to harvest the high profits that they have amassed.

In the same chart, Santiment has also attached the data for the exchange netflow, which shows that some inflows of $7.6 million just have occurred towards centralized exchange platforms, implying that profit-taking may already be beginning.

This is a relatively modest amount, but the analytics firm warns that inflows can be something to be cautious about, as they could lead towards at least a temporary top in the price.

Whales, Fresh Wallets Accumulating, Maker (MKR) Spikes 120% In 3 Months

On-chain data reveals that whales and new wallets are scooping more Maker (MKR), which seems to be propping the token, fanning demand. As of September, MKR is one of the top-performing tokens, adding roughly 120% in three months from June 2023 lows.

When writing, MKR is changing hands above $1,300 and inching closer to July 2023 highs. Notably, MKR is up 14% in the past week of trading, driving market cap above $1.27 billion and trading volume by 36% on the last day.

Fresh wallet buying more MKR

Whales And Fresh Wallets Buying Maker (MKR)

Trackers note that in the last week of trading, a whale, “0xad0”, bought 1261 MKR worth $1.62 million at an average price of $1,290. Moreover, looking at the trends, whale and fresh wallet activities have been heightened over the previous week. With more accumulation, the token has been tracking higher in tandem.

Maker price on September 20: Source: MKRUSDT on Binance, TradingView

Parallel data from Lookonchain confirms this development, especially from early September. Earlier this month, a whale sold $1.13 million of Ethereum and bought an equal amount in MKR on Binance.

This transaction comes a day after another entity moved $12.3 million of MKR from Binance. However, while whales appear to be loading up more MKR, Vitalik Buterin, the co-founder of Ethereum, sold his stash of MKR for ETH on September 2. 

Maker Finance is a decentralized lending and borrowing platform on Ethereum. As of September 20, the protocol had a total value locked (TVL) of over $4.8 billion, according to DeFiLlama. More data shows that the platform held $109.56 million of MKR, its native token, and different stablecoins worth $49.58 million. 

Maker Finance TVL DeFiLlama

DAI Yield Rising, New Burning Structure Implemented Fueling Bulls

MakerDAO, a decentralized autonomous organization (DAO), manages DAI, an algorithmic stablecoin that passes yield to the holder. Holders of MKR, the native token of Maker, can also vote on proposals.

Following the brief USDC depegging in March 2023, the DAO reduced its reliance on the USDC, a centralized fiat-backed stablecoin. In early August, the community also voted to temporarily increase the DAI Savings Rate (DSR) from 3.19% to 8%, incentivizing users to mint DAI via the Spark Protocol. 

Besides changes to the DSR, MakerDAO also introduced an improved smart burn mechanism where collateralized debt positions (CDPs) to back circulating DAI can be closed freely without causing stablecoin shortages in the market. In this new arrangement, circulating MKR would be bought and burned independent of CDP closure, allowing the protocol to be more flexible in light of market changes.

However, with this, every burning reduced circulating supply, which has supported prices as price action revealed.

No Vitalik, No Problem: Whale Sells Ethereum (ETH) For Maker (MKR)

Less than a week after Vitalik Buterin, one of the co-founders of Ethereum, sold his Maker (MKR) stash for ETH, one crypto whale has done the opposite. On-chain data on September 4 shows that one Ethereum holder sold 694 ETH, worth roughly $1.13 million when writing, for 1,010 MKR. At the time of the swap, MKR was changing hands at $1,122. 

Whale Swaps ETH For MKR

As of September 4, the address, “0x3737,” had over $20.37 million worth of assets. While the whale trades against Vitalik and doubles down on MKR, zooming in on the address’s portfolio shows that the largest holding is ETH. 

Whale's portfolio: DeBank

The address holds 10,000 ETH worth $16.3 million at spot rates, representing over 75% of the total portfolio. Meanwhile, some of his other major holdings include Arbitrum (ARB), worth $2.9 million, and MKR, worth $1.1 million. 

MKR, the token issued by MakerDAO, the decentralized autonomous organization (DAO) that controls the minting of DAI, a stablecoin on Ethereum, has been ripping higher in the last few months. 

MKR plays a key role in stabilizing DAO and is used as a last resort. Holders participate in governance, voting on proposals that best stabilize the algorithmic stablecoin, deciding collateral types accepted, stability fee adjustments, and others.

From June, MKR has more than doubled, rising 125% to peak at around $1,300 in early August. It is now trading at over $1,100, up 13% from August lows.

Maker price on September 4: Source: MKRUSDT on Binance, TradingView

Maker Presents Endgame

The token’s surge has been attributed to multiple factors, specifically the release of the “Endgame” roadmap. Under this plan, MakerDAO plans to, among other things, release their blockchain, rebrand, and introduce two more tokens. 

This move is significant because MakerDAO is among the first decentralized finance (DeFi) protocols. According to DeFiLlama data, the protocol has a total value locked (TVL) of over $5 billion. It is the largest decentralized money market in the world. 

MakerDAO TVL: DeFiLlama

Meanwhile, DAI, its algorithmic yield-earning stablecoin, has been stable recently and is the largest in Ethereum. At press time, DAI had a market cap of $5.3 billion, perched at 12th on the leaderboard. At this pace, DAI is the third-largest stablecoin after USDT and USDC.

Vitalik Buterin, despite the stellar performance of MKR relative to the broader crypto market, liquidated $580,000 worth of MKR after MakerDAO’s co-founder, Rune Christensen, said it was considering launching a new blockchain bridging to Ethereum that’s based on Solana’s code. The new blockchain, dubbed NewChain, is part of MakerDAO’s roadmap, “Endgame”.

Maker Large Holders Accumulate, MKR Rally To Continue?

On-chain data shows large Maker holders have accumulated recently, a sign that the rally could extend soon.

Maker Large Holders Have Continued To Expand Their Holdings Recently

According to data from the market intelligence platform IntoTheBlock, inflows to the wallets of the large MKR investors have been taking place for a while now. The “large holders” here refer to those investors who hold at least 0.1% of the cryptocurrency’s circulating supply.

In Maker’s case, this value would equal about $1.2 million. Thus, the only holders who would clear these criteria would be the sharks and whales, the largest entities on the network.

These investors generally hold some influence in the market, as they can move many tokens at once. Thus, the behavior of this cohort could be worth watching, as it may reveal answers about where the asset might be heading next.

One way to track the behavior of these humongous holders is through the “netflow” metric, which measures the net amount of MKR that these large investors are adding into or moving out of their combined holdings right now.

When the value of this metric is positive, it means that a net number of coins is entering into the supply of these investors currently, suggesting that they are participating in buying.

On the other hand, negative values could imply that this group may be selling as its members are transferring a net amount of the asset away from their wallets.

Now, here is a chart that shows the trend in the Maker large holders netflow over the last few months:

Maker (MKR) Large Holders Netflow

The above graph shows that the Maker large holders’ netflow has been almost entirely positive during the past few months. There were a few dips into the negative territory, but the net outflows weren’t significant in scale then.

In the past few weeks, there haven’t been any drops below the zero mark, suggesting that the large holders have only continued accumulating more MKR recently.

Something to note here is that a positive netflow doesn’t mean that there isn’t any selling taking place at all. Instead, it simply suggests that the accumulation is enough to cancel any distribution.

In the past couple of months, the cryptocurrency has seen an overall uptrend, which could be a consequence of the net buying these investors have been participating in.

Since this month has started, though, the asset has declined. Nonetheless, as the netflows have only remained positive throughout this decline, the large holders have been buying regardless.

This conviction from these large holders can naturally be a positive sign for Maker, as the asset could potentially continue its rally soon.

MKR Price

At the time of writing, Maker is trading around $1,200, up 4% in the last week.

Maker Price Chart