MKR Price Surge: SKY Staking Fuels Rally
MKR Price Surge Fueled by SKY Staking
The Maker [MKR] token experienced a significant price increase, surging 8% on June 2nd, driven by the launch of SKY staking. This rally extended to 18% throughout June, as whales capitalized on double-digit yield opportunities.
LookOnChain data revealed that two whales withdrew 3,114 MKR (approximately $5.4 million) to upgrade to SKY and participate in staking. This migration reflects the growing interest in the Sky ecosystem's lucrative staking rewards.
SKY Ecosystem Upgrade Accelerates
The DeFi lending protocol, MakerDAO, rebranded to the Sky ecosystem in September. The upgrade involves replacing MKR with SKY as the governance token (1 MKR = 24,000 SKY) and DAI with the new USDS stablecoin (1:1 conversion).
Initial SKY staking rewards reached a high of 38%, settling around 17% at the time of writing. This incentivized rapid adoption, with over 40,000 MKR (roughly $72 million) upgraded and staked on June 2nd alone. Despite this, only 43% of MKR's total supply has been upgraded, suggesting further price increases as the conversion continues.
The staking frenzy dramatically increased the Sky ecosystem's Total Value Locked (TVL), doubling it from 2.89B SKY to 7.11B SKY.
MKR Price Analysis and Future Outlook
While the SKY token initially saw a 50% price jump (from $0.07 to $0.10), it later retracted some gains. MKR, however, continued its upward trend, adding another 4% after its initial 8% pump. The Relative Strength Index (RSI) indicates potential for further growth, potentially pushing MKR towards the $2,000 mark.
Interestingly, MKR has shown negative net exchange flows since late May, suggesting strong accumulation as tokens move from exchanges to self-custody wallets.
With continued interest in SKY staking rewards, whales are likely to continue upgrading MKR to SKY. If the initial staking-induced price pump persists throughout the remaining conversion period, MKR could see even further gains.
Codeum Note: Codeum provides comprehensive blockchain security solutions including smart contract audits, KYC verification, custom smart contract development, and tokenomics consulting. Partner with Codeum to ensure the security and success of your blockchain project.