An Ethereum-based competitor of the Terra ($LUNA) ecosystem that collapsed earlier this month has been seeing its price surge amid “major whale activity,” as large holders are presumably moving towards it and its decentralized stablecoin.
According to data from on-chain analytics firm Santiment, Maker ($MKR) has seen “major whale activity” in the last couple of days as it has seen its largest spike in transactions above $100,000 since January.
The firm’s data shows that addresses holding between 100 and 10,000 MKR now hold 51.7% of the cryptocurrency’s supply, a new all-time high. The accumulation started to pick up late last month while the cryptocurrency’s price dropped along with the rest of the crypto market over Terra’s collapse.
Terraform Labs’ algorithmic stablecoin UST lost its peg last week after a $500 million withdrawal from its Anchor Protocol led to a large sale on Curve, where liquidity was low. The sale saw UST lose its peg and triggered a bank run. Because of the algorithmic system behind UST, trillions of LUNA were printed while the stablecoin’s value kept on dropping.
During the crash several other stablecoins briefly lost their peg. Maker is the protocol behind the DAI stablecoin, which relies on cryptocurrency reserves to maintain its peg. To mint DAI, users have to overcollateralize their position in a bid to ensure the peg is kept even during market downturns.
Maker is the governance token of the Maker decentralized autonomous organization (DAO) and can be used to vote on governance proposals associated with the protocol and its DAI stablecoin.
As Daily Hodl reports, crypto analytics firm IntoTheBlock shows that large holders currently control 85% of all circulating MKR, with 52% of holders being “in the money” and 38% being “out of the money.”
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