- MakerDAO down 24% post-rebrand, facing market criticism and concerns.
- Early MKR holder sold for 70x profit amid recent rebranding.
A long-term MakerDAO holder has drawn attention after selling 251.5 MKR tokens, netting $408,000 worth of Ethereum. The transaction, executed seven hours ago at $1,624 per token, yielded a return of nearly 70 times the initial investment. They acquired 451.5 MKR tokens in 2017 at around $23 per token.
???? A super early $MKR holder has sold after over 7 years!
– This holder bought 451.5 old $MKR in 2017 when the price was ~$23 (the inception of $MKR).
– This holder just sold 251.5 $MKR ($408K) for 172.5 $ETH ~5 hours ago at $1,624 (x70).#MakerDAO is down 24% since the rebrand…
— Spot On Chain (@spotonchain) September 6, 2024
This significant move comes amidst a broader downtrend for MakerDAO, which has experienced a 24% decline since rebranding to Sky. The rebrand, introduced on Aug. 27, has drawn mixed reactions due to its controversial “freeze function,” and market conditions have further compounded the downturn.
Moreover, the rebrand replaces MKR with a new governance token, SKY, and introduces Sky Dollar (USDS), a revamped version of the stablecoin DAI. Users have the option to exchange MKR for SKY at a rate of 24,000 SKY per MKR, while DAI can be swapped for USDS at a 1:1 parity.
This overhaul is part of a broader strategy by MakerDAO, with USDS now able to supply liquidity to the Sky Protocol, similar to how DAI can be locked into the DAI Savings Rate (DSR) program. By locking USDS, users can earn a variable rate of accrual paid in SKY.
Will MakerDAO Price Recover After Rebranding to Sky？
As MKRs price trends lower, currently trading at $1,629.01, its daily chart reveals a bearish outlook. The 9-day Exponential Moving Average (EMA) stands at $1,721, and the Relative Strength Index (RSI) is at 31, signalling oversold conditions.
Despite the decline, a bullish reversal could push MKR toward resistance levels at $1,895 and $1,963. On the downside, further losses could see MKR testing support at $1,594 and potentially $1,464.With investors closely monitoring MakerDAOs performance post-rebrand, its ability to regain momentum remains in focus.