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News/Investors Embrace SOL as Vitalik Dumps MKR After MakerDAO's Solana Fork Pitch

Investors Embrace SOL as Vitalik Dumps MKR After MakerDAO's Solana Fork Pitch

Sep 5 2023

10 months ago4 minutes read
A dynamic, colorful illustration of a robot engrossed in active crypto trading

Vitalik Buterin Outbids MKR Faced with MakerDAO's Solana Fork Proposal 

Written by Van

Rune Christensen, MakerDAO's founder, rocked the boat when he proposed forking Solana. This remark on the project's future appchain migration has raised eyebrows within the Ethereum community. Specific cause for concern arises from the suggested launch of the forthcoming appchain on a fork of the Solana codebase. 

Citing Solana's track record in scalability, security, and successful forks, Christensen added weight to his proposition. Christensen also noted Cosmos as a potential contender. However, he minimized its significance by spotlighting its inferior efficiency when contrasted with Solana.

In reaction, Ethereum founder, Vitalik Buterin, expressed his disappointment by selling his 500 MKR stake, corresponding to a whopping 353 ETH or $580,000, marking the first time he sold his MKR after 2 years. This move caught attention given Ethereum's substantial market cap and its influence on crypto price trends.

vitalik txs tracked by arkham.webp
Source: Arkham Intelligence

Buterin's response wasn't limited to selling his MKR stake. He turned to Reflexer, a notable competitor to MakerDAO's DAI stablecoin. Urging them to explore minority liquid staking tokens (LSTs), Buterin actively stoked potential market expansion.

Embarked on its ongoing "Endgame" overload, MakerDAO has outlined plans for an appchain migration. Along with the creation of specialized subDAOs, the overhaul includes significant changes to its MKR and DAI tokens and governance processes. Industry insiders speculate the launch is at least three years down the lane.

Appchains are emerging as a popular hosting choice, particularly for applications that favor fast, cost-effective transactions or high throughput. As this trend gains traction, the crypto community keenly awaits the next move in this dynamic checkerboard.


Solana Co-Founder Advocates Solidarity Amidst MakerDAO Fork Saga

Solana co-founder, Anatoly Yakovenko, recently took a stance in the complex MakerDAO scenario. He appealed to the crypto community to celebrate the decision of MakerDAO, viewing it as a triumph for open-source technology. 

Yakovenko's words cut through the tension as he urged against any ill-feeling toward Ethereum. He stressed that much of Solana's triumph stands on the shoulders of Ethereum's in-depth research and groundbreaking development.

The conversation sparked in the wake of Ethereum co-founder, Vitalik Buterin's unexpected actions. Buterin, an erstwhile MKR token holder, divested completely from his position. This impromptu move stoked the flames of curiosity, causing ripples in the crypto realm. 

What's notable here is that Buterin's connection with Solana isn't a hidden fact. He'd previously expressed his admiration for the Solana network, a reason why his sudden liquidation of the MKR tokens was met with surprise by those in the know. 

Drawing the bigger picture in focus, many see this development as a positive one. MakerDAO's contemplation to choose Solana underscores the strength of open-source technology, reflecting its burgeoning role in the dynamic landscape of the crypto industry.


Whale Bets on Maker with Ethereum Sale 

Not long after Ethereum co-founder Vitalik Buterin made a surprising exit from holding Maker (MKR) tokens, an influential crypto investor - colloquially known as a "whale" - decided to swim against the tide.

On September 4, as the Ethereum market cap continued to hold $196bn, the crypto whale unloaded 694 Ethereum (ETH). At the prevailing crypto coin prices, the transaction was worth an estimated $1.13m. In return, the whale amassed 1,010 MKR tokens. At the time of the swap, the value of MKR was hovering around $1,122 on cryptocurrency charts

whale txs history on debank.webp
Source: DeBank

This otherwise anonymous trader, known in crypto circles simply by their address "0x3737," currently boasts a portfolio worth in excess of $20.37m. Interestingly, the largest holding within this portfolio remains Ethereum.

However, the recent decision to acquire MKR tokens seems to hint at a bullish outlook for MakerDAO, the issuer of MKR. This token has seen its fortunes rise over recent months, with a price hike of 125% since June. Even now, it continues to trade comfortably over $1,120. 

chart.webp

Further propelling the optimism around MakerDAO is DAI, its proprietary algorithmic yield-earning stablecoin. DAI has firmly established itself as a key player, securing a stellar $5.3bn market cap. This achievement cements its place as the third-largest stablecoin, trailing only behind USDT and USDC.

Clearly, this crypto whale is banking on a bright future for MakerDAO, choosing to invest heavily in MKR even as Vitalik Buterin chose to part ways with the token. This 'against the flow' move perhaps underscores a sentiment distinct from Vitalik's, one that sees amplified potential for MKR. 


The Rising Tide of Solana: Attracting Investors

In recent times, the altcoin market has seen a concerning movement – investors zealously withdrawing funds. Amid this exodus, however, Solana (SOL) stands as the exception. This outlier status of Solana in the wavering altcoin marketplace is noteworthy.

Over a span of seven weeks, a significant retreat from crypto investment products has been observed. The market has grappled with capital flight, largely owing to concerns among investors. But Solana seems immune to this trend. Institutional investors, heralded as influential players in market directions, have been pouring capital into Solana.

CoinShares, a prominent name in asset management, reported an influx of investment in SOL. According to them, entities invested $700,000 in SOL this past week. CoinShares aptly coined Solana "the most loved altcoin amongst investors at present," based on this pattern.

chart (1).webp

Year-to-date inflows for this altcoin have surged, with SOL's inflow string currently standing impressively at $26 million. To contextualize the interest in Solana, a comparison is in order. In the same week that saw $700,000 flowing into SOL, Polygon and Ethereum, two heavyweights in the crypto world, saw a hemorrhage. Investors pulled out $8.6 million and $3.2 million from these investment products, respectively.

The trading volumes for SOL bolster its rising popularity narrative even further – volumes were considerably higher than average last week, reaching a staggering total of $2.8 billion.

Solana is a blockchain platform that enables the building of decentralized applications. It's underpinned by SOL, its native crypto asset, which is used for transactions on the platform. Solana's unique properties and growing traction haven't gone unnoticed.

In a testament to its burgeoning reputation, Solana was recently suggested as a platform by MakerDAO's co-founder and CEO for launching a project's new chain. This suggestion to consider a Solana-based platform for MakerDAO's future developments underscores Solana's growing prestige in the crypto space.


Final Thoughts

In conclusion, the crypto landscape is in constant flux, with key players, market trends, and technological advancements dictating the dynamic shifts. The recent developments involving Ethereum's co-founder Vitalik Buterin, the MakerDAO's proposed Solana fork, and the unexpected maneuvers by a crypto whale underscore this characteristic volatility. 

In this thriving sector, Solana has emerged as a favorite, attracting both institutional and enthusiast investors. Whether this trend continues will depend on a myriad of factors, affirming the need for constant vigilance and proactive adaptation in the unpredictable world of cryptocurrencies.


FAQs

1. What caused Ethereum founder Vitalik Buterin to sell his stake in MKR?

Buterin was prompted to sell his 500 MKR stake, equating to 353 ETH ($580,000), following Rune Christensen, the co-founder of MakerDAO, suggesting launching a future appchain on a fork of the Solana codebase.

2. What is MakerDAO's 'Endgame' overhaul?

MakerDAO's 'Endgame' overhaul consists of significant alterations to its MKR and DAI tokens, governance processes, and creation of specialized subDAOs alongside plans for an appchain migration. 

3. Who is the crypto whale and why did they choose to sell ETH for MKR?

The unidentified crypto whale, known as "0x3737", sold 694 ETH (approx. $1.13 million) to acquire 1,010 MKR. Although Ethereum remains the largest holding in their $20.37 million portfolio, this move indicates their bullish sentiment for MakerDAO and the MKR token.

4. How is Solana gaining traction among altcoins?

Despite a downturn in altcoin investment, Solana has attracted institutional investment with $700,000 and year-to-date inflows standing at $26 million. It's now deemed the 'most loved altcoin amongst investors', according to CoinShares.

5. How does Solana's functionality contribute to its attractiveness?

As a blockchain platform enabling the building of decentralized applications, Solana offers unique features and benefits such as scalability and security. Its native crypto asset, SOL, is used for transactions on the platform, adding an extra layer of convenience and functionality.

This article has been refined and enhanced by ChatGPT.

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