There were huge on-chain token movements for MKR yesterday – $48M moved vs the $4.4M in total on chain volume the previous day. The move took place ahead of yesterday's Governance and Risk meeting, which was focused on 'Supply/Demand Imbalance' and took place ahead of today's stability fee vote. Ethereum came under selling pressure ahead of the event, however, DAI staged a modest recovery during the Governance and Risk meeting, which indicated that the decrease in ETH was exaggerated. The crypto community and, in particular, the Ethereum community, has very much embraced the world of Decentralised Finance (DeFi) and a rate hike to 7.5% is unlikely to result in significant unwinding of collateralized positions. Furthermore, the discount to spot is a strong indication that the majority are using it for leverage on ETH, and raising rates will only accelerate this trend.
What’s more is that a report, citing Richard Brown, head of core community at the MakerDAO Foundation, highlighted that a total of 73% of voters who staked MKR tokens voted in favor of the 4% raise. Of the total MKR tokens staked, 75.6% were staked in favor of the 4% Raise.
In other news, Bitmain is said to be planning to deploy 200,000 units of its own mining equipment in China to take advantage of cheap hydroelectric power this summer.
Finally, the co-founder of Ethereum, Vitalik Buterin, pointed out that high ETH prices are important both for network security and the development of the wider ecosystem.
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