Sky ecosystem’s flagship token, Maker (MKR), is experiencing a surge in value, putting nearly 50% of its holders in a profitable position. Over the past 24 hours, MKR has seen an 11% increase, reaching an intraday high of $1,280. Its market cap has now surpassed $1.1 billion, solidifying its position as the 64th-largest cryptocurrency.
The surge in MKR’s price has also been accompanied by a significant rise in daily trading volume, which has increased by 120% to $150 million. Despite these recent gains, Maker is still down 80% from its all-time high of $6,339 in May 2021.
While the increased trading volume indicates growing interest in MKR, it does pose the risk of a price correction in light of the current market conditions. However, data from IntoTheBlock shows that approximately 50% of MKR holders, totaling around 47,560 addresses, are currently in a profitable position. Another 5% are close to recouping their initial investment, while the remaining 45% are still at a loss.
Furthermore, the number of daily active addresses holding MKR in profit has increased over the past week, rising from just seven to 48. This suggests that more MKR holders are taking advantage of the current market conditions to cash in on their investments.
However, it is worth noting that a significant portion of the MKR token supply, around 81%, is held by whale wallets. Therefore, the profit-taking activity of these large holders could potentially impact the overall price of MKR.
Additionally, data from IntoTheBlock reveals an increase in large MKR transactions, with over $72 million worth of MKR being exchanged in transactions exceeding $100,000 in the past seven days. There has also been an uptick in MKR net inflows to exchanges, with a notable $4.27 million influx recorded on October 30 alone.
Amidst these market developments, the Sky ecosystem, formerly known as Maker, has been grappling with an identity crisis following its rebranding. Co-founder Rune Christensen has proposed a return to the project’s original name, while the replacement for DAI, USDS, has gained significant traction, with its supply reaching one billion tokens within just two weeks. An announcement regarding the rebranding decision is expected in mid-November.
Overall, Maker’s recent surge in value has brought a substantial portion of its holders into a profitable zone, indicating positive market sentiment and potential opportunities for investors.