Why MakerDAO Has Sold $31.20 Million in MKR in Two Months
MakerDAO has been actively selling its governance token, MKR, in significant amounts over the past two months. These sales have caught the attention of the industry, and on-chain analytics reveal interesting insights into their strategy.
Spot On Chain, an on-chain analytical platform, reported that MakerDAO’s Multisign 0xbba has been consistently depositing MKR tokens since March 18, 2024. The total deposits amount to a staggering 11,993 MKR, valued at $31.18 million, with an average price of $3,184. Interestingly, these deposits usually precede a price drop, indicating a strategic approach to managing market movements.
One notable transfer during this period involved 9,043 MKR, worth $29.75 million, which flowed from Wintermute Trading OTC to centralized exchanges like Binance, Coinbase, and Kraken. Moreover, 2,950 MKR, valued at $8.43 million, was directly deposited into Binance via an intermediary wallet in the past 11 days.
Despite these sales, MakerDAO’s Multisign still retains a substantial amount of MKR, with 18,978 MKR worth over $60 million.
These significant transactions coincide with MakerDAO’s plans to introduce two new tokens – NewStable (NST) and NewGovToken (NGT). NST is an upgraded version of Dai, offering enhanced stability features for broader adoption, while NGT aims to foster wider participation and dynamic decision-making within MakerDAO’s ecosystem. Dai holders can seamlessly upgrade to NST, and MKR holders can convert each MKR into 24,000 NGT, encouraging broader engagement in governance activities.
Although MKR experienced a dip of approximately 28% from its April highs, technical analysis suggests a potential reversal. A bullish cup and handle pattern has formed, and a breakout from the neckline could push prices up by nearly 14% to $3,327. However, failing to breach this level may result in support forming around $2,700.
Investors should take note of MakerDAO’s deposit patterns, which often coincide with price drops, when making trading decisions.