Whales and New Wallets Increasing Their Holdings of Maker (MKR)
Recent on-chain data shows that whales and new wallets are acquiring more Maker (MKR) tokens, which is contributing to the token’s growth and increasing demand. Since June 2023, MKR has been performing well, with a gain of approximately 120% in three months. Currently, MKR is trading above $1,300 and approaching its July 2023 highs. In the past week alone, MKR has seen a 14% increase in value, pushing its market cap above $1.27 billion and boosting trading volume by 36%.
Increased Activity from Whales and Fresh Wallets
Tracking data reveals that a whale known as “0xad0” recently purchased 1261 MKR tokens worth $1.62 million at an average price of $1,290. Over the past week, there has been a noticeable increase in activity from whales and fresh wallets. This accumulation has contributed to the upward movement of the token.
DAI Yield Rising with New Burning Structure
The MakerDAO, a decentralized autonomous organization (DAO), manages DAI, an algorithmic stablecoin that provides yield to its holders. Holders of MKR can also participate in voting on proposals within the DAO. Following the temporary depegging of USDC in March 2023, the DAO reduced its reliance on this centralized fiat-backed stablecoin.
In August, the community voted to temporarily increase the DAI Savings Rate (DSR) from 3.19% to 8%, encouraging users to mint DAI through the Spark Protocol. Additionally, MakerDAO implemented an improved smart burn mechanism where collateralized debt positions (CDPs) backing circulating DAI can be closed without causing stablecoin shortages. This allows for more flexibility in response to market changes. Each burn reduces the circulating supply of MKR, which has helped support its price.
Hot Take: Increased Demand and Improved Mechanisms Fuel Maker’s Growth
The increased activity from whales and fresh wallets, combined with the implementation of a new burning structure, has contributed to the growth of Maker (MKR). As demand for MKR continues to rise, its value has surged, making it one of the top-performing tokens in recent months. With its decentralized governance model and improved mechanisms, MakerDAO is positioning itself as a key player in the crypto space.
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