- These whale actions can add to the negative perception around MKR.
- Sentiment around MKR declined as FUD started to grow.
MakerDAO [MKR] made headlines recently as its co-founder sold a large amount of MKR. Data indicated that this wasn’t an isolated event and other whales have been following suit.
Whales swim away
As per lookonchain’s data, a significant transaction occurred over the last four days where a whale offloaded 2,658 MKR, at an average price of $2,022.
Subsequently, the price of MKR experienced a 7.6% decrease following the large selling. Despite this, the whale still retained 2,007 MKR, valued at $3.9 million.
And the price of $MKR has dropped by 7.6% since the whale began dumping.
— Lookonchain (@lookonchain) January 29, 2024
The news follows a similar transaction from a Maker co-founder who sold MKR worth $4.5 million recently.
The fact that whales were engaging in selling behavior can add to the negative perception around MKR.
Investors may interpret this as a signal of collective apprehension among significant holders, potentially causing doubt about MKR’s future price trajectory and overall market sentiment. This was further illustrated by the decline in weighted sentiment for MKR.
A decline in weighted sentiment suggested that many users on social media had a bearish outlook towards MKR. Along with the decline in MKR’s price, there was a massive decline in network growth as well.
This indicated that no new addresses were trying to accumulate MKR and none of them saw the correction as an opportunity to buy MKR at a discount. A lack of interest from buyers could further impact the price of MKR negatively.
Moreover, the velocity at which MKR was trading at also declined.
Rolling the DAI
Even though the whales were dumping their tokens, it wasn’t an indication of a lack of faith in the MakerDAO ecosystem.
The sell-off of these tokens was immediately followed up by an accumulation of DAI.
How much are 1,10,100 MKRs worth today?
Despite the large accumulation of DAI, there wasn’t much change observed in terms of market cap for the stablecoin.
As other stablecoins such as USDC and USDT continued to see growth in terms of market cap, DAI’s market cap remained flat.