Maker's MKR token saw an 8% jump in price on June 2, driven primarily by whale activity related to the launch of SKY staking, which offers attractive double-digit yields. LookOnChain reported that two significant holders withdrew a total of 3,114 MKR, valued at approximately $5.4 million, to transition to the new staking protocol under the rebranded Sky ecosystem.
The Sky ecosystem, which aims to replace MKR with its new governance token, SKY, has generated significant interest among investors. This transition involves a conversion rate where 1 MKR equals 24,000 SKY, along with the introduction of a new stablecoin, USDS, set to replace DAI at a 1:1 ratio. Upon launching, the staking rewards peaked at a substantial 38%, though they have since settled at around 17% as of the latest updates. On June 2 alone, over 40,000 MKR (roughly $72 million) was upgraded and staked.
Importantly, only about 43% of MKR's total supply of 530K tokens has transitioned to SKY. This remaining supply could influence both MKR’s and SKY’s market prices positively if the upgrades continue. The total value locked (TVL) in the Sky ecosystem has surged from 2.89 billion SKY to 7.11 billion SKY, reflecting strong market interest. Following these developments, the SKY token briefly rose 50% before losing some of its gains, and the MKR token has maintained a strong performance, growing an additional 4% on the same day, achieving an 18% increase for the month.
Despite significant net outflows from exchanges since late May, the price momentum indicators suggest that MKR might reach a psychological level of $2,000 in the near future. As whale activity continues, driven by the potential returns from staking, MKR may see further upward movement.
The Sky ecosystem, which aims to replace MKR with its new governance token, SKY, has generated significant interest among investors. This transition involves a conversion rate where 1 MKR equals 24,000 SKY, along with the introduction of a new stablecoin, USDS, set to replace DAI at a 1:1 ratio. Upon launching, the staking rewards peaked at a substantial 38%, though they have since settled at around 17% as of the latest updates. On June 2 alone, over 40,000 MKR (roughly $72 million) was upgraded and staked.
Importantly, only about 43% of MKR's total supply of 530K tokens has transitioned to SKY. This remaining supply could influence both MKR’s and SKY’s market prices positively if the upgrades continue. The total value locked (TVL) in the Sky ecosystem has surged from 2.89 billion SKY to 7.11 billion SKY, reflecting strong market interest. Following these developments, the SKY token briefly rose 50% before losing some of its gains, and the MKR token has maintained a strong performance, growing an additional 4% on the same day, achieving an 18% increase for the month.
Despite significant net outflows from exchanges since late May, the price momentum indicators suggest that MKR might reach a psychological level of $2,000 in the near future. As whale activity continues, driven by the potential returns from staking, MKR may see further upward movement.
