MakerDAO: Is whale interest the catalyst MKR needs?

December 26, 2023

By Himalay Patel

• Whales begin to accumulate MKR.

• MakerDAO’s Spark protocol saw massive growth and attracted new addresses to DAI.

According to recent data posted by Lookonchain, whales have started to accumulate MakerDAO [MKR] in large amounts over the last few weeks.

Notably, a significant withdrawal of 2,251 MKR ($3.18 million) was executed by a whale from the Binance [BNB] platform.

Whale interest on the rise

This behavior by whales could have both positive and negative implications for MKR.

On the positive side, the reduction in circulating supply could potentially create upward price pressure, benefiting MKR holders. The market’s perception of this large withdrawal may also enhance confidence in MKR as an appealing asset.

However, the negative impacts are noteworthy. The sizable transaction might induce short-term price volatility, and liquidity concerns could arise if the withdrawal represents a significant portion of available liquidity on the exchange.

Additionally, market speculation surrounding the intentions behind the withdrawal may lead to unpredictable price movements and heightened market dynamics.

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