Ethereum Founder Vitalik Buterin Liquidates MakerDAO Investment Portfolio, Triggering over 7% Decline in MKR

On September 1st, MakerDAO CEO Rune Christensen publicly stated that they were considering switching to a new blockchain, with Solana being a more suitable choice.

Tweet by Rune Christensen, Source: X.

In his tweet, from the source X, Rune Christensen explained why Solana was chosen, stating, "Solana's codebase has unparalleled technical quality and optimizations, and has shown resilience even after the FTX crash and successful forks like Pyth Network."

Furthermore, Rune Christensen envisioned the future where the new blockchain for MakerDAO would act as a secure bridge connecting Ethereum and Solana blockchains while providing "useful leverage over the network effects of the entire multichain economy."

Christensen believed that this would enable the Solana mainnet to access native Maker DeFi capabilities and capital, providing valuable momentum to the network effects of the entire multichain economy by connecting two of the most prominent blockchains through a highly secure bridge. In simple terms, this move could facilitate a stronger and more secure integration between the two economies.

In response to Rune Christensen's decision, Ethereum blockchain founder Vitalik Buterin took action. On September 2nd, Vitalik Buterin transferred 500 MKR to CoWSwap and converted it into 350 ETH.

With a current circulating supply of nearly 1 million MKR, Vitalik Buterin selling 500 MKR accounted for only 0.05% of the total supply. Thus, from a supply-demand perspective, the selling pressure did not pose a significant threat. However, Vitalik Buterin is a prominent figure in the cryptocurrency space, and his actions can impact the market. Moreover, this was his first time selling MKR in 2 years.

Many people viewed Vitalik Buterin's sale of MKR, especially after announcing the change in the blockchain, as a concerning move. Regardless of the facts, the price of MKR has experienced three consecutive bearish candles and declined by approximately 7%, from $1184 to $1100, after Vitalik Buterin's sale.

Price Trend Chart of MKR from January 2023 to September 2023, Source: TradingView.

Currently, MKR has yet to find support, but it is not far from the next support level at $1000. The possibility of breaking below that level seems unlikely based on market dynamics. However, it is important to keep an eye on any further developments from Vitalik Buterin, considering his influence. If he were to call on the community to sell MKR, that support level could be breached by bearish sentiment.