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MakerDAO’s transition to the SKY ecosystem has ignited significant whale activity, driven by the launch of SKY staking with attractive double-digit rewards.
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The MKR token has seen an 18% rally in June, fueled by the staking incentives and ongoing conversion to SKY governance tokens.
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According to LookOnChain, large holders have actively upgraded and staked MKR, signaling strong confidence in the new ecosystem’s growth potential.
MakerDAO’s SKY staking launch boosts MKR whale activity, driving an 18% rally and accelerating token upgrades with double-digit rewards and growing TVL.
SKY Staking Launch Spurs MKR Price Rally and Token Upgrades
The introduction of SKY staking has created a notable surge in MakerDAO’s ecosystem activity, with initial rewards peaking at an impressive 38% before stabilizing around 17%. This high yield environment has incentivized MKR holders, particularly whales, to convert their tokens to SKY and participate in staking. On June 2nd alone, over 40,000 MKR tokens, valued at approximately $72 million, were upgraded and staked, marking a significant acceleration in the transition process.
Despite this momentum, only 43% of the total MKR supply has been converted, leaving substantial room for further upgrades. This ongoing conversion is expected to sustain upward pressure on both MKR and SKY prices as more holders seek to capitalize on staking rewards. The total value locked (TVL) in the Sky ecosystem has more than doubled, rising from 2.89 billion SKY to 7.11 billion SKY, underscoring the growing confidence in the platform’s revamped governance and stablecoin structure.
Whale Activity and Market Dynamics Following SKY Staking Debut
Whale behavior has been a critical driver behind the recent MKR price rally. LookOnChain data revealed that two prominent holders withdrew a combined 3,114 MKR tokens, worth around $5.4 million, to upgrade and stake in the SKY ecosystem. This strategic move highlights the appeal of SKY’s double-digit staking rewards and the broader market’s anticipation of the governance token transition.
Following the staking launch, MKR’s price surged by 8% on June 2nd and continued to gain momentum, reaching an 18% increase for the month and retesting the $1,800 level. Meanwhile, SKY token prices experienced a rapid 50% increase from $0.07 to $0.10 before retracing some gains. Technical indicators such as the Relative Strength Index (RSI) suggest potential for further MKR price appreciation, possibly approaching the $2,000 psychological threshold.
Source: Sky Money
Market Indicators Reflect Strong Accumulation and Positive Sentiment
On-chain analytics further reinforce the bullish narrative for MKR. Glassnode data indicates sustained negative net exchange flows since late May, meaning more MKR tokens are being withdrawn from exchanges into self-custody wallets. This trend typically signals accumulation by long-term holders and reduced selling pressure, which can underpin price appreciation.
As the SKY staking program continues, it is expected that whales and institutional investors will maintain their upgrade and staking activities to maximize returns. This behavior could create a feedback loop, where increased staking demand supports MKR’s price and encourages further ecosystem participation.
Source: Glassnode
Future Outlook: SKY Conversion and Its Impact on MakerDAO’s Ecosystem
The ongoing conversion from MKR to SKY tokens represents a pivotal shift in MakerDAO’s governance and stablecoin framework. With only 43% of MKR supply currently upgraded, the remaining transition phase could act as a catalyst for further price appreciation and ecosystem engagement. The attractive staking rewards serve as a strong incentive for holders to participate actively, potentially increasing the total value locked and strengthening network security.
Investors and ecosystem participants should monitor the pace of SKY staking adoption and MKR price movements closely, as these factors will likely influence MakerDAO’s trajectory in the competitive DeFi landscape. The combination of robust staking yields, growing TVL, and positive on-chain accumulation signals a promising phase for the Sky ecosystem’s development.
Conclusion
The launch of SKY staking has effectively energized MakerDAO’s ecosystem, triggering significant whale activity and an 18% rally in MKR prices this June. With substantial token upgrades and a doubling of TVL, the transition to SKY governance tokens is gaining momentum. On-chain data supports a strong accumulation trend, suggesting sustained confidence among holders. As the conversion progresses, the Sky ecosystem is well-positioned to capitalize on staking incentives and market interest, potentially driving further growth and adoption in the decentralized finance sector.
