MKR: Will whales ‘Make’ it out of the bear market?
- Despite a bearish crypto market, whales were accumulating MKR.
- MakerDAO explored integration with zkSync to expand its ecosystem and increase demand for sDAI.
Despite the bearish sentiment prevailing in the cryptocurrency market, MakerDAO [MKR] was an outlier, showing signs of growth. This growth was particularly evident in the rising interest of whales in the MKR token.
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Whales move in
Whale accumulation has been noticeable, with several substantial transactions recorded recently. For example, one whale withdrew 869 MKR (equivalent to approximately $1.27 million) from Binance [BNB] and held a total of 3,549 MKR (valued at about $5.17 million).
Another wallet withdrew 1,001 MKR (approximately $1.46 million) from Binance as well.
3 whales are accumulating $MKR!
— Lookonchain (@lookonchain) October 16, 2023
The positive aspect of this accumulation is the growing confidence among large MKR holders in the token’s potential. It may also indicate their belief in MakerDAO’s ecosystem.
However, there are also potential negative implications, such as the concentration of a significant amount of MKR in the hands of a few entities, which could lead to centralization concerns.
As of the latest available data, MKR was trading at $1,395. Despite the increased whale accumulation, the token’s price had remained relatively stable over the past few weeks. However, the network growth of MKR declined, suggesting a waning interest among new addresses.
The reduction in network activity may be attributed to overall market sentiment or the emergence of new competitive protocols and tokens.
Interestingly, the velocity of MKR remained consistent. This implied that the token was still actively circulating within the ecosystem. While declining new addresses may be a concern, the token’s continued use in the existing community was a positive indicator.
A new Spark
In terms of MakerDAO’s protocols, the Spark Protocol, a lending platform developed by MakerDAO, is considering a launch on zkSync. This move is motivated by the potential benefits offered by zkSync, a Layer 2 scaling solution for Ethereum [ETH].
zkSync boasts EVM compatibility, which makes it easy to deploy existing decentralized applications. Additionally, it aligns with the ethos of decentralization and offers enhanced security through zero-knowledge proofs.
Realistic or not, here’s MKR’s market cap in BTC’s terms
The integration with zkSync is expected to bring new use cases for DeFi and increase demand for sDAI, which is MakerDAO’s stablecoin.
zkSync has shown significant growth in terms of total value locked (TVL), user count, and transaction volume, making it a promising platform for further expansion.