MKR extended its June rally to 18% following the debut of SKY staking, incentivizing significant whale activity and token upgrades. On June 2nd, the Maker (MKR) price jumped 8% as whales withdrew 3,114 MKR (worth approximately $5.4 million) to convert and stake in the new SKY ecosystem. The protocol rebranded from Maker to Sky last September, with a planned long-term migration where SKY will replace MKR as the governance token at a conversion rate of 1 MKR to 24,000 SKY. Additionally, the upgraded USDS stablecoin will replace DAI on a 1:1 basis.
Following the launch of SKY staking, rewards initially reached 38% APY before stabilizing around 17%, fueling a staking frenzy. Over 40,000 MKR (~$72 million) have been upgraded and staked so far, representing about 43% of MKR's total 530,000 token supply. This conversion momentum is likely to continue, potentially driving both MKR and SKY prices higher.
The total value locked (TVL) in the Sky ecosystem doubled from 2.89 billion SKY to 7.11 billion SKY. SKY token price surged over 50% from $0.07 to $0.1 but retraced some gains at press time. MKR also posted consistent gains, rallying 18% in June and retesting $1,800 with technical indicators suggesting potential further upside towards $2,000.
Technical momentum for SKY is strong with a 13% daily price gain, price trading above its 20-day EMA, and an RSI near 60, indicating growing demand and bullish control. The Elder-Ray Index also shows increased buying power. If the current trend holds, SKY may break $0.075 and rise towards $0.078, although profit-taking risks remain.