MakerDAO’s co-founder sold large amount of LDO, here’s what happened next

ambcrypto.com:

According to data provided by lookonchain, it was observed that the co-founder of MakerDAO, Rune Christensen, bought MKR tokens while exiting his LDO positions.

Rune sold 18.86 million LDO tokens for an overall price of $27 million DAI. In the same period, he bought 15,092 MKR, which roughly amounted to $4.44 million DAI. Well, these transactions could impact the state of both tokens going forward.

Read MKR’s Price Prediction 2023-2024

In the past, there were five instances where Rune sold large amounts of LDO. For the first three times, the large-scale selling of LDO occurred concurrently with price drops. However, for the last two times, there wasn’t any correlation observed as LDO prices surged despite the sell-offs.

Source: lookonchain

Even though the recent sell-offs haven’t impacted LDO’s prices yet, this behavior could start FUD amongst LDO holders. However, on the flip side, the large-scale buying of MKR tokens could provide hope to holders of MKR.

Notably, despite the large amounts of MKR being bought, its market cap remained below that of LDO. According to data provided by Santiment, both LDO and MKR token’s market cap started to rise at the beginning of 2023. However, LDO outperformed MKR by a huge margin in this area over the last three months.

At press time, the market cap of LDO was 2.62 billion, whereas the market cap of MKR was just 751.71 million.

Source: Santiment

One of the reasons why LDO managed to outcompete MKR in this area could be due to its network growth and velocity.

On both fronts, LDO managed to outperform MKR. A higher network growth implied that LDO was more appealing to new addresses than MKR. On the other hand, a higher velocity suggested that there was much more activity around LDO tokens than