Maker (MKR), the governance token of the MakerDAO and Maker Protocol, experienced a sudden and substantial price surge of approximately 20%. The notable increase in value has been primarily linked to recent activities involving venture capital firm Andreessen Horowitz (a16z) and CMS Holdings. Andreessen Horowitz, known for its substantial investments in various technology companies, was observed depositing Maker tokens onto the cryptocurrency exchange Coinbase, presumably with the intention to sell them.
The depicted chart clearly illustrates the asset’s upward trend. The Relative Strength Index (RSI) indicator confirms a significant surge in buying activity within the asset market. At present, the RSI is positioned in the overbought zone.
The reported amount of MKR deposited by a16z was 12,864, valued at around $12.6 million. Additionally, a separate transfer of 6,900 Maker tokens (equivalent to $8 million) was made to a new address, suggesting potential plans for further deposits on an exchange. As of now, a16z holds 12,396 MKR tokens, which are valued at approximately $14.4 million.
At the same time, CMS Holdings, a private investment firm specializing in blockchain and decentralized finance, decreased its recently accumulated MKR holdings. Just before the surge, the firm deposited 525 Maker (approximately valued at $614,000) to Binance. Prior to this, CMS Holdings had withdrawn 1,325 Maker (worth $1.54 million) from both Binance and Bitget, at an average price of $793. Currently, the firm’s Maker holdings stand at 800 tokens, with an approximate value of $936,000. This sudden adjustment in the holdings of these influential market players likely played a role in the surge of MKR’s price. As significant quantities of Maker were sold, the market reacted, leading to increased trading volume and subsequently driving the price upwards.
Looking ahead, this abrupt increase in MKR’s price can be interpreted in two ways. On one hand, the actions of major investors like a16z and CMS Holdings bring added attention to MKR, potentially attracting new buyers and further pushing the price higher. On the other hand, the decision by these entities to reduce their holdings may raise questions about the token’s long-term value.
MKR Token Holders Celebrate as Majority Turn Profitable
According to data from IntoTheBlock, around 59% of MKR holders were seen to be making gains, while only 35% were facing losses. Furthermore, other important metrics, such as large transaction volume and active addresses, exhibited substantial growth within the past 24 hours.
The network witnessed a remarkable 40% surge in large transaction volume, amounting to $20.22 million. Additionally, there was a notable 22.79% increase in the percentage of active addresses.