The price of Maker (MKR), the governance token of the MakerDAO and Maker Protocol, suddenly skyrocketed by almost 20%. The recent actions of CMS Holdings and venture capital company Andreessen Horowitz (a16z) are principally to blame for this sharp change in value.
MKR was witnessed being deposited to the cryptocurrency exchange Coinbase by Andreessen Horowitz, which is well known for making substantial investments in a wide range of technological startups with the intention of selling them. A16z reportedly made a deposit of 12,864 MKR, or around $12.6 million. Another 6,900 MKR ($8 million) were moved by the company to a different address, with possible plans to deposit the tokens on an exchange. A16z now owns 12,396 MKR coins valued at around $14.4 million.
CMS shares, a private investment company focused on blockchain and decentralised finance, decreased its recently increased MKR shares at the same time. Two hours before to the rise, the company made a deposit of 525 MKR (worth about $614,000) to Binance. At an average price of $793, CMS Holdings had previously taken 1,325 MKR ($1.54 million) from Binance and Bitget. The company now possesses 800 MKR, which are roughly worth $936,000.
The abrupt change in these powerful market participants’ holdings is probably what caused MKR’s price to increase. Large sales of MKR caused the market to respond, which boosted trading activity and resulted in a price increase.
Future perspectives on this unexpected price hike for the MKR are possible from two angles. On the one hand, the participation of big-time investors like a16z and CMS Holdings raises awareness of MKR and may draw in more purchasers, pushing up the price. However, the decision by these organisations to cut back on their holdings may cast doubt on the token’s long-term viability.
