Sky ecosystem’s previous token, Maker, is recording upward momentum as holders prepare to take profits.

Maker is up 11% in the past 24 hours and is trading at an intraday high of $1,280 at the time of writing. The asset’s market cap has surpassed the $1.1 billion mark, making it the 64th-largest cryptocurrency.

MKR’s daily training volume increased by 120%, reaching $150 million. Despite the gains, Maker is still down by 80% from its all-time high of $6,339 on May 4, 2021.

Its high trading volume shows increased interest in the token. However, the sudden surge could trigger a price correction due to the greedy market conditions.

50% MKR holders in profit

According to data provided by IntoTheBlock, 50% of MKR holders, accounting for 47,560 addresses are currently in profit. Almost 5% of the investors are close to their initial investment and the remaining 45%, 43,700 addresses, are still at a loss.

Moreover, the number of Maker daily active addresses in profit rose from seven to 48 over the past week. 

While this number is much lower than the total number of MKR holders, the profit-taking could still impact the asset’s price considering that over 81% of the token supply is sitting in whale wallets.

Notably, the large holder accumulation has been cooling down since Oct. 26 when MKR was hovering below the $1,100 mark, per ITB data.

Data from ITB shows that the whale transactions consisting of at least $100,000 worth of MKR rose from 14 to 38 over the past three days. Over $72 million in such transactions have been recorded in the last seven days.

The amount of MKR exchange net inflows has also been increasing over the past week. According to ITB, Maker recorded an exchange net inflow of $4.27 million on Oct. 30 alone.

The Sky ecosystem, formerly known as Maker, has been wandering in an identity crisis after its rebranding. Rune Christensen, co-founder of Maker, made a proposal to return to its old name while the DAI replacement’s, USDS, supply reached one billion tokens in two weeks.

The rebranding decision is likely to be announced in mid-November.

Source : Economy News by Reuters - Oct 31, 2024