MakerDAO has recently conducted significant sales of its governance token, MKR, with notable transactions observed on the blockchain. According to data from Spot On Chain, MakerDAO’s Multisign 0xbba transferred 750 MKR, valued at $2.19 million, to Binance through an intermediary wallet at a price of $2,920.
Spot On Chain analysis indicates that since its resurgence on March 18, 2024, the Multisign has consistently deposited MKR tokens totaling 11,993 MKR, valued at $31.18 million, at an average price of $3,184. These deposits often precede price drops, suggesting a strategic approach to managing market movements.
During this period, a significant transfer of 9,043 MKR, worth $29.75 million, occurred from Wintermute Trading OTC to various centralized exchanges (CEXs) like Binance, Coinbase, and Kraken between March 18 and April 22. Additionally, 2,950 MKR, valued at $8.43 million, was directly deposited into Binance via an intermediary wallet in the last 11 days.
Despite these transactions, the Multisign still holds a substantial 18,978 MKR, worth over $60 million.
This heightened activity aligns with MakerDAO’s plans to introduce two new tokens – NewStable (NST) and NewGovToken (NGT). NST, an upgraded version of Dai, offers enhanced stability features, while NGT represents a revamped governance model to encourage broader participation and dynamic decision-making within MakerDAO’s ecosystem.
Users will have the option to transition to NewStable and NewGovToken without replacing the existing Dai (DAI) and Maker (MKR) tokens.
Despite recent market fluctuations leading to a 28% decline in MKR from its April highs, technical analysis suggests the formation of a bullish cup and handle pattern, with a potential breakout pushing prices up by nearly 14% to $3327. Alternatively, failure to breach this level could see support forming around $2,700.
Investors may consider MakerDAO’s deposit patterns, often coinciding with price drops, as part of their trading decisions.
May 2024, Cryptoniteuae
