MKR Surges 30% Following “Executive Vote” as Whale Gains $5.21 Million

MakerDAO has made substantial protocol improvements to improve the stability and demand for its Dai (DAI) stablecoin in the face of volatile market conditions. This decision comes after its native token, MKR, had a huge price spike of more than 30% in the last two days. The positive momentum was still in place at press time, with the MKR trading at $2,675.73, up 7.49% from the intraday low.

MKR
Source: Finbold
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Amid this instability, a renowned investor known by the address 0x8af took advantage of the situation by selling 939.8 MKR for around 2.54 million DAI, corresponding to an average price of around $2,702 per MKR.

This sale was part of a larger strategic move, after the removal of 4,077 MKR from the Bybit exchange in October 2023 at a significantly lower price of around $1,439 per MKR. This investor retains 3,077 MKR, worth an estimated $8.33 million, for a total profit of $5.21 million, an 89% rise.

After the $MKR soared 30% (2D), whale 0x8af sold 939.8 $MKR for 2.54M $DAI at ~$2,702 in the last 4 hours for profits

Market Reaction and Strategic Decisions

MakerDAO’s strategic revisions are a direct response to the fast changing dynamics of the cryptocurrency market. Specifically, these revisions address a large dip in Dai’s supply, which fell from $5 billion to $4.4 billion in the last seven days. The drop prompted MakerDAO to propose a “Executive Vote” to implement temporary fee adjustments and protocol strengthening measures.

The proposal, supported by BA Labs, a member of the Maker Stability Advisory Council, calls for a faster approval procedure for stablecoin stability measures, particularly if users choose to redeem some of the $1.1 billion in real-world assets (RWA) accessible on the network.

Due to the recent market volatility, an Accelerated Proposal has been submitted for an Executive Vote to prepare the Maker Protocol for a potential excessive Dai demand shock induced by additional bullish enthusiasm.

The proposed changes include increasing the stability fees on various collateral assets from 15% to 17.25%, raising the SparkLend DAI Borrow annual percentage yield from 6.7% to 16%, and making additional changes to improve the protocol’s stability and responsiveness to market situations.

MKR/USD Technical Analysis

The stochastic RSI on the MKRUSD 24-hour price chart is in the overbought region, with a rating of 90, implying that Maker (MKR) may soon experience a price correction. If the price correction occurs, it may be a buying opportunity for buyers looking to enter or increase their position in Maker (MKR) at a cheaper price.

However, the Moving Average Convergence Divergence (MACD) trend in the positive region indicates that Maker (MKR) is still hopeful, which could lead to further price increases before a correction. For a potential reversal, the MACD must fall below the signal line, indicating a shift in momentum towards a downward trend. However, the histogram remains positive, indicating that there may be some consolidation before a price reversal.

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