Maker (MKR) has defied the broader crypto market’s turbulence, surging over 75% in a week. A significant driver behind this rally is the recent $156 million token burn, which has slashed MKR’s circulating supply, fueling a bullish sentiment. However, a recent whale selloff raises questions about the sustainability of this price surge.
Massive $156M Token Burn Fuels MKR Surge
According to transaction tracker Whale Alert, approximately $156.77 million worth of MKR was burnt on February 20. The burn, executed through eight large transactions by wallet address ‘0xf65,’ drastically reduced the token’s supply, triggering a supply-demand-driven price spike.
🔥 14,000 #MKR (16,979,652 USD) burned at unknown wallethttps://t.co/LPUxObihQh
— Whale Alert (@whale_alert) February 20, 2025
Following the burn, MKR’s price soared 77% in a week, climbing to an intraday high of $1,473.35. Token burn mechanisms, which permanently remove coins from circulation, often create deflationary pressure that supports price appreciation. Given the significant reduction in supply, investor optimism around MKR remains high.
TVL Strengthens Maker’s Market Position
Apart from the massive token burn, Maker’s growing Total Value Locked (TVL) further bolsters its standing in the DeFi space. Data from DeFiLlama shows Maker’s TVL reaching $5.55 billion on February 16, solidifying its rank among the top Ethereum-based DeFi projects. The increasing TVL suggests sustained user confidence and heightened network activity, adding more fuel to MKR’s bullish momentum.
Whale Selloff Raises Concerns
Despite the rally, a significant whale transaction has cast doubt over MKR’s short-term trajectory. According to SpotonChain, a whale identified as “inveteratus.eth” liquidated all 1,230 MKR holdings for 1.78 million USDC at an average price of $1,448. The whale, boasting a flawless trading history with MKR, took profits amid the rally, signaling a possible loss of confidence.
While the selloff doesn’t necessarily indicate an impending downturn, it introduces caution among traders. If other large holders follow suit, profit-taking pressure could temporarily slow down MKR’s bullish momentum.
MKR’s impressive price action, backed by a major burn and strong TVL growth, has reinforced bullish sentiment. However, profit-taking by experienced traders could introduce short-term volatility. The key question remains whether MKR can sustain its upward momentum or if further whale selloffs will trigger a pullback.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
