- MKR extended its June rally to 18% after SKY staking debuted.
- The MKR-SKY conversion was only 43% done, but staking accelerated the upgrade.
On the 2nd of June, Maker [MKR] price surged 8% as whales rushed to hunt for double-digit yield following SKY staking debut.
According to LookOnChain, two whales withdrew 3,114 MKR, worth about $5.4 million, and upgraded to SKY and staked.
The DeFi lending protocol rebranded to the Sky ecosystem last September.
As part of its long-term plans, SKY would replace MKR as the new governance token with a conversion rate of 1 MKR to 24,000 SKY.
Additionally, USDS, its new upgraded stablecoin, would replace DAI on a 1:1 conversion rate.
SKY crypto staking frenzy juice MKR
Immediately after SKY staking went live, rewards hit a whopping 38% but stabilized to 17% at the time of writing.
Unsurprisingly, the SKY upgrade from MKR also accelerated, with over 40K MKR (about +$72 million) upgraded and staked on the 2nd of June.
However, only 43% of MKR’s 530K token supply was upgraded, meaning the remaining conversions may drive MKR’s and SKY prices upwards.
The staking frenzy saw the Sky ecosystem’s TVL (total value locked) doubled from 2.89B SKY to 7.11B SKY.
Source: Sky Money
Meanwhile, SKY token price mooned +50% from $0.07 to $0.1. But the token gave back most of the gains at press time.
For MKR, the token pumped 8% on Monday and posted another 4% gain at the time of writing. So far, in June, MKR has rallied 18% and retested $1800.
Source: MKR/USDT, TradingView
That said, the RSI showed potential for more growth, suggesting that the trend may rally MKR to $2K psychological level.
That said, MKR has recorded negative net exchange flows since late May. This suggested a strong accumulation trend over the period as more MKR tokens were moved from exchanges to self-custody.
Source: Glassnode
Now with SKY staking, whales will continue to withdraw and upgrade MKR to SKY to hunt staking rewards. If the staking pump seen on Monday holds for the rest of the SKY conversion, MKR may surge further.
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