Maker (MKR) price has defied the broader crypto market’s recent turbulent action, rallying over 75% in a week. The DeFi cryptocurrency recently witnessed a staggering $156 million token burn, which appears to have fueled a price upswing. As a result, market watchers are highly bullish on the token’s future outlook, although a recent smart whale trade maneuver sparked contrasting speculations.
Maker (MKR) Price Bullish As Supply Takes Hit Amid Massive $156M Burn
According to a series of X posts by the transaction tracker Whale Alert on Feb 20, a staggering $156.77 million MKR was burnt recently, which dealt a massive blow to the token’s circulating supply.
As an upshot, Maker price soared 77%, per the weekly chart, abiding by the law of supply and demand. For context, token burn mechanisms focus on permanently reducing a crypto’s market supply, propelling a bullish impact on price.
Meanwhile, the wallet address ‘0xf65’ was reported to be solely responsible for the massive burn, per Whale Alert data that revealed 8 colossal burn transactions on Feb 20. Market watchers weigh substantial optimism over the asset in light of the supply shredding drastically within such a brief period.
TVL Boosts Market Standing
Simultaneously, another vital factor appears to be driving the leading DeFi token‘s recent growth. As per DeFiLlama data, the TVL on the Maker ecosystem stood at $5.55 billion on Friday. This data further cemented the protocol’s market standing, making it one of the top DeFi projects on the Ethereum blockchain.
MKR Price Rally To Sustain?
As mentioned above, MKR coin’s price has already defied the broader market turmoil, rallying 77% in a week and over 22% in a day. The coin currently rests at $1,445.25, with an intraday low and high of $1,177.44 and $1473.35, respectively. Traders also appear to be positive amid the massive burn, as the coin’s intraday trading volume soared 166% to $257.95 million.
Smart Whale’s Trading Sparks Caution
However, it’s worth mentioning that a smart whale has cashed out all its MKR holdings amid the recent rally. Although this mover underscored a profit-booking motive, market watchers exercise caution as the selloff also indicates a loss of confidence for the asset among experienced traders.
According to SpotonChain data on Feb 21, the address 0x637 (“inveteratus.eth”) sold all his holdings (1,230 MKR) for 1.78 million USDC at an average price of $1,448. This trader boasts a 100% win rate with his previous tradings for the same DeFi token. In turn, the maneuver added a layer of intrigue to the price action ahead despite massive burn transactions spurring a rally.
The post Maker (MKR) Price Rallies Amid Massive $156M Burn, What’s Next? appeared first on CoinGape.
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