Amid MakerDAOs 135m audit contest MKR experiences a 9 surge
MKR, the native token of the Maker protocol, has experienced a significant surge of 9%, positioning it as one of the top performers among the leading 100 cryptocurrencies.
As of the time of writing, MKR is being traded at $2,522, and its daily trading volume has increased by 23% to $107 million. The token’s market capitalization has also risen by 8% to reach $2.34 billion, placing it as the 39th largest cryptocurrency asset according to data from CoinMarketCap.
The recent surge in the MKR token can be attributed to a recent announcement made by MakerDAO on June 25th. MakerDAO, a DeFi lending protocol and developer of the stablecoin DAI, revealed a groundbreaking audit contest worth $1.35 million, making it the largest of its kind.
The Sherlock Platform, a prominent provider of audit contests in the Web3 space, will host this significant audit contest. It is a crucial part of MakerDAO’s Launch Season, which marks the initial phase of the Endgame set to take place later this summer.
The Endgame represents the final stage of development in MakerDAO’s long-term strategy. Its objective is to overhaul governance and establish a self-sustaining equilibrium known as the Endgame State.
Rune Christensen, co-founder of MakerDAO, emphasized the importance of the Endgame launch, stating that “rock-solid security has always been a priority for MakerDAO.” He further explained that partnering with Sherlock to create a program to thoroughly test the system was a logical step as MakerDAO progresses towards the Endgame.
The open-invite bug-finding competition aims to attract top security experts and emerging researchers to quickly identify any vulnerabilities. Taking place from July 8th to August 5th, 2024, the contest intends to leverage the expertise of the global security community to rigorously test the codebase before the official launch. Participants will have four weeks to meticulously scrutinize every line of the codebase.
Jack Sanford, co-founder of Sherlock, expressed his admiration for MakerDAO’s unwavering commitment to security by initiating the largest audit contest in history. He also anticipated strong performances from both experienced security experts and up-and-coming participants.
Leading up to the contest, the week of July 1st will feature educational content, including helpful tips and insights from top MakerDAO bug bounty hunters, as well as a code walkthrough from the MakerDAO team and prominent figures in the crypto space.
In addition to the audit contest, another potential factor contributing to the surge in the Maker protocol is significant whale buying activity. On-chain analytics platform iCrypto reported that within a three-hour period, a whale named “Thiswillmakeyouloveagain” purchased 37.35 MKR ($94,562) in the price range of $2,521 – $2,526. This wallet currently holds 452.76 MKR, equivalent to approximately $1.15 million.
Similarly, another whale named “twofoldcap.eth” bought 66.55 MKR ($165,000) at a price of $2,447, and the wallet currently holds 100.81 MKR ($256,860).
Moreover, multiple analysts have noted that MKR is forming a falling wedge pattern in the last 12-hour timeframe, suggesting a potential breakout.
In summary, MKR’s recent surge can be attributed to the announcement of the $1.35 million audit contest, the significant whale buying activity, and the formation of a falling wedge pattern. These factors have contributed to its impressive performance and dominance in the Ethereum lending market, with a 52% market share.
