Recent data published by Lookonchain indicates that whales have been accumulating significant amounts of MakerDAO (MKR) tokens in the past few weeks. A notable withdrawal of 2,251 MKR (worth $3.18 million) was made by a whale from the Binance platform. This behavior could have both positive and negative impacts on MKR.
On the positive side, the reduction in circulating supply could potentially create upward price pressure, benefiting MKR holders. Market perception of this large withdrawal could also boost confidence in MKR as an attractive token. However, the negative effects could be significant. The large transaction may cause short-term price volatility and liquidity concerns if the withdrawal represents a significant portion of the exchange’s liquidity.
Additionally, market speculation about the intentions behind the withdrawal could lead to unpredictable price movements and increased market dynamics. A key factor supporting MakerDAO is the success of the Spark protocol, which has facilitated the uninterrupted flow of hundreds of millions of DAI. At the time of writing, 528 million DAI had been deposited into Spark, directly supporting liquidity.
The current debt ceiling flow, set at 800 million DAI, contributes an estimated annual revenue of about 27.1 million DAI to the Maker Protocol, positioning Spark as Maker’s highest-earning crypto vault. This could mark a milestone as the first fully operational product supported by a SubDAO within the MakerDAO ecosystem.
These factors could enhance the bullish trend surrounding the MKR token, which was trading at $1,425.64 at the time of writing. Despite a 0.37% drop in price over the last 24 hours, the volume remained high. The accumulation of MakerDAO (MKR) by large whales, especially through withdrawals from Binance, has led to a decrease in circulating supply, positively affecting the MKR price. However, it could also increase short-term volatilities and raise liquidity concerns.