- These whaling actions may contribute to the negative perception surrounding MKR.
- Sentiment around MKR dropped as the FUD started to grow.
MakerDAO [MKR] recently made headlines when the co-founder sold a large amount of MKR. Data indicated that this was not an isolated event and that other whales followed suit.
Whales swim away
According to lookonchain’s data, a significant transaction took place in the last four days where a whale unloaded 2,658 MKR, at an average price of $2,022.
Subsequently, the price of MKR fell by 7.6% due to the heavy selling. Despite this, the whale still retained 2,007 MKR, worth $3.9 million.
A whale dumped 2,658 $MKR for 5.37 million $DAI at an average price of $2,022 over the past 4 days.
And the price of $MKR has fallen 7.6% since the whale started dumping.
The whale still has 2,007 $MKR ($3.9 million), be careful selling!https://t.co/4Inn58tYVb pic.twitter.com/uGhe38Wb7P
— Lookonchain (@lookonchain) January 29, 2024
The news follows a similar transaction from a Maker co-founder, who recently sold MKR for $4.5 million.
The fact that whales engaged in sales behavior may contribute to the negative perception surrounding MKR.
Investors may interpret this as a signal of collective concern among major holders, potentially casting doubt on 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 social media users had a bearish view on MKR. Along with the drop in the price of MKR, there was also a huge drop in network growth.
This indicated that there were no new addresses trying to collect MKR and none of them saw the correction as an opportunity to buy MKR at a discount. A lack of buyer interest could further negatively impact MKR’s price.
In addition, the speed at which MKR traded also decreased.
Source: Santiment
The DAI rolls
Although the whales dumped their tokens, this was not an indication of a lack of trust in the MakerDAO ecosystem.
The sell-off of these tokens was immediately followed by an accumulation of DAI.
How much is 1,10,100 MKRs worth today?
Despite the large accumulation of DAI, not much change was observed in terms of market capitalization for the stablecoin.
While other stablecoins such as USDC and USDT continued to see growth in terms of market capitalization, DAI’s market capitalization remained flat.
Source: Santiment