Tech

Whales sell their MKR: Were prices affected?

12 months ago
Bitcoin Ethereum News
  • BlockTower Capital sold a large share of its MKR.
  • The overall price of MKR declined, but MakerDAO saw growth.

Over the last few months, MakerDAO [MKR] did very well as a protocol. Despite this, many whales were starting to lose interest in the token.

Whales swim away

As per data from Lookonchain, BlockTower Capital completed transfers of 3,333 MKR to Coinbase and FalconX in the “last 5 hours,” accruing around $1.5 mln in profits.

BlockTower Capital initially acquired 12,502 MKR between the 20th of May and the 14th of November 2022. At press time, the firm’s holdings stood at 9,746 MKR, with a floating profit of $4.5M.

The recent actions by BlockTower Capital could influence the broader MKR market in several ways. Notably, such significant transactions may signal confidence or strategic positioning, potentially attracting attention from other market participants.

The profits generated could lead to increased interest in MKR as an investment, contributing to positive sentiment.

Is your portfolio green? Check out the MKR Profit Calculator

On the flip side, large transactions also have the potential to impact market dynamics. If BlockTower Capital decides to make further moves, it might lead to short-term price fluctuations, impacting trading patterns.

Traders and investors may closely monitor such activities for cues on potential market trends and adjust their strategies accordingly.

At press time, MKR was trading at $1,513.53. In the last 24 hours, its price fell by -0.92%. Only time will tell if MKR’s price will decline further.

Source: Santiment

Revenues on the rise

Despite the performance of the token, MakerDAO did well with its 5% yield.

While a 5% yield from the risk-free rate may not sound particularly enticing, Maker has achieved its second-highest monthly revenue ever, defying conventional expectations. Notably, in 2022, the DAI supply was almost double what it is today.

Maker continues to dominate as the leading decentralized application (dApp) in terms of revenue, with a significant gap between its earnings and those of its closest competitors.

Source: https://eng.ambcrypto.com/whales-sell-their-mkr-were-prices-affected