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"Even amidst the ongoing slump in the cryptocurrency market, decentralized lending protocol MakerDAO has seen its platform token MKR surge to a new 18-month high this year, fueled by the biggest RWA theme in the cryptocurrency market. According to Coingecko data, MKR's price has nearly doubled this year, outperforming Bitcoin and most altcoins.
Bloomberg: The Crazy Rally May Have Ended
According to Bloomberg, there are signs that the crazy rally of MKR so far this year may be entering a short-term tailspin. CryptoQuant data shows that the amount of MKR tokens held by centralized exchanges has been increasing, with a total of up to 5,090 MKR (approximately $7.6 million) moved from investor wallets to exchanges since September 27th. This phenomenon indicates that a majority of investors may be inclined to sell MKR, realizing profits from the gains made this year.
Whale Long and Short Battle
Additionally, on-chain data reveals that several whales are currently engaged in long and short positions on MKR. One whale with an address starting with 0x475 bought 13,527 MKR at an average price of $1,113 on Binance from August 31st to September 5th. However, in recent days, they began moving a large portion of this MKR to Binance in preparation for selling, having transferred a total of 8,527 MKR. They currently hold 5,000 MKR, with total profits amounting to $4.77 million, resulting in a return rate of 32%.
Interestingly, despite MKR's price retracement of around 8% yesterday, an address starting with 0xd4e, identified as a whale, continuously bought MKR on Coinbase Prime at a price of $1,448. They have accumulated 8,176 MKR, worth approximately $11.8 million.
Through a Proposal to Invest Up to $6 Billion in US Treasuries
After MakerDAO offered DAI holders a limited-time 8% annual yield incentive, DAI's circulation increased from a low of $3.9 billion on August 20th to $5.5 billion. Coupled with a proposal passed by MakerDAO on September 25th, allowing it to invest up to $6 billion in short-term US Treasuries, double the current limit, this could trigger a new wave of short-term US Treasury purchases for MakerDAO. Allan Pedersen, CEO of Monetalis, responsible for helping MakerDAO expand its RWA, previously stated in an interview that if DAI supply continues to increase, it is easy to imagine a doubling of Maker's US Treasury investments in a very short time frame.
Regarding DAI's previously excellent yield rates, eToro analyst Simon Peters attributed them to rising Treasury yields, which have increased significantly since the last FED meeting hinted at maintaining higher rates in the long term." |
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Post time 2-10-2023 11:05:41
