Altcoin project Maker (MKR) has made significant gains this week even as the crypto market crashes, with whales flooding the network, according to on-chain data provided by crypto analytics firm Santiment.
The interest of whales sparked the altcoin project, then its price dropped!
After showing huge gains in the cryptocurrency market, MKR Blockchain has seen a 21% increase in whale activity. In addition to the increasing number of transactions in wallets exceeding $100,000, key stakeholders currently have the highest percentage of MKR supply, according to on-chain analytics firm Santiment.
Maker has seen massive whale activity over the past few days, with the massive surge in transactions over $100,000 pushing the asset further by +21% in the past week and by +18% in just the past day. Key stakeholders have an AllTimeHigh (ATH) in the MKR offering.
As you can follow from Cryptokoin.com news, on May 11, MKR , managed to increase its price by 100% in less than 24 hours, breaking a record. However, due to the high selling pressure in the market, the price of the token dropped and lost all its growth within a few hours. According to CoinMarketCap data, at the time of writing, MKR was trading at $1,481 with a loss of 4.39% in the last 24 hours.
MKR 7-day price chart / Source: CoinMarketCap Why did Maker’s price suddenly spike so high?
The skyrocketing of the altcoin price in such a short time and while there was an earthquake in the crypto money market also brought question marks. Arman Shirinyan, a crypto analyst looking for an answer to this question, makes the following assessment:
As no fundamental updates or news have been provided by the developers recently, we can conclude that the massive 35% token growth is purely speculative and may also be due to the collapse of the Terra ecosystem. .
Maker is the management token of Maker Protocol, an Ethereum-based ecosystem that allows the issuance of MakerDAO and DAI stablecoin. According to the analyst, the purpose of the token could be key to its massive growth as users holding funds in the UST stablecoin seek alternative solutions like Maker.
Maker is the authority on DAI stablecoins, a soft-peg, community-governed decentralized stablecoin. The dollar peg is achieved with the help of cryptocurrency-based collateral deposited in a smart contract.
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