.jpg)
- MKR price fell after phishing attack caused sentiment to decline.
- Short positions taken against MKR increased.
MakerDAO [MKR] It has been one of the most popular protocols in the stablecoins and decentralized finance space. However, recent events may cause short-term problems for MKR in the future.
The trolling is gone
Lookonchain, an onchain analytics account, reported a major phishing attack that occurred just 5 hours ago. In this incident, the victim suffered a staggering loss of $11.1 million.
The attacker exploited the victim’s digital wallet, taking a large amount of cryptocurrency holdings.
This included 3,657 MKR tokens worth approximately $8.7 million, and 2.56 million PT Ethena tokens worth approximately $2.4 million.
In a move to quickly convert the stolen assets into usable currency, the attacker dumped a large amount of MKR tokens onto the market.
This sudden sale of 3,657 MKR tokens led to a significant 7% drop in the cryptocurrency’s prices. The attacker also exchanged 2.56 million PT Ethena tokens for 689 ETH, which translates to approximately $2.41 million.
Source: X
This price drop could have a significant negative impact on the sentiment surrounding MKR. Investors may become wary of holding a token that is vulnerable to such sudden and large losses.
News of the exploit could spread fear and uncertainty, prompting investors to sell their MKR holdings to avoid further losses.
This incident is likely to contribute to an increase in public short interest in MKR. With the price of MKR already falling, short sellers may see this as a good moment to enter the market, betting that the price will continue to fall.
Short positions against MKR have already risen to 50.83% at the time of writing.
Source: Coinglas
On-chain data shows signs of hope
However, despite all these factors, the growth of the network has grown significantly in the past few days, which means that new users have shown interest in the MKR token.
Velocity has also increased, indicating increased trading frequency.
Is your wallet green? Check the MKR profit calculator.
The increased interest in new addresses also indicates that many investors view the recent correction as an opportunity to buy more MKR at a discount.
If this trend continues, MKR could recover and see green going forward. At the time of writing, MKR was trading at $2,420.47.
Source: Santiment
