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Maker: Assessing the bursting whale interest in MKR and its impact on investors 

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MakerDAO managed to witness some significant improvements in its performance over the past 30 days. According to data from Messari, the deposit, withdrawal and borrow volume grew significantly over the past month.

The deposit volume grew by 15.35% along with the withdrawal volume. Furthermore, the overall borrow volume grew by 40.36% and 61.70% respectively. This uptick in activity also managed to pique the interest of whales.

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Here’s AMBCrypto’s Price Prediction for MakerDAO [MKR]  for 2022-2023

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‘Whale’iant efforts

According to WhaleStats, a crypto whales tracking platform, MKR was among the top 10 purchased tokens by Ethereum whales on 6 November. At the time of writing, Ethereum whales were holding $73 million worth of MKR.

As can be seen from the image below, the supply held by top addresses witnessed an uptick over the past few days. This developed re-affirmed the notion that MKR was garnering interest from large investors.

However, during the same period, MakerDAO’s network growth continued to decline. This indicated that the amount of new addresses that transferred MKR for the first time witnessed a drop. Furthermore, the Market Value to Realized Value (MVRV) ratio also moved in a negative direction during this time period.

Source: Santiment

MKR out in the open

Although there were multiple ups and downs in terms of MakerDAO’s race to the top, their growth in terms of revenue was consistent. This could be due to the fact that 50% of MakerDAO’s revenue was being generated from real-world assets, mainly MIP65 short-term bonds, ETF, and GUSD rewards.

With an ever increasing revenue, there also stood the possibility that DAI holders could be rewarded to accelerate MakerDAO’s growth. This development may generate further interest in MakerDAO’s stablecoin, DAI.

Furthermore, as can be seen from the image below, the number of monthly DAI transactions declined over the past few months. The aforementioned update could increase interest in DAI and have a positive impact on the growth of the stablecoin.

Source: Dune Analytics

At the time of writing, DAI stood at the #4 rank in terms of market cap in the stablecoin category according to CoinMarketCap. Its volume depreciated by 41% in the last 24 hours along with its market cap, which fell by 0.01%.

However, MKR’s price on the other hand appreciated and grew by 4% at press time. It was trading at $895.72 at the time of press and its volume had depreciated by 24% over the past 24 hours.

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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