Maker price drop continues as selling pressure on MKR brews across exchanges

Maker tokens worth $12.8 million were shed by an institutional crypto trading platform in the past week.
MKR supply on exchanges climbed 35% between September 5 and early on Monday, indicative of rising selling pressure.
MKR price trades at $1,415, yielding 2.14% losses for holders over the past week.

Maker, an ERC-20 token native to the Maker Protocol, has registered an increase in its reserves across exchanges. Part of this increase in reserves can be attributed to a move from institutional crypto trading platform FalconX, which according to data from an on-chain tracker has sent $12.8 million worth of MKR tokens to exchanges over the past week.

Typically, rising exchange balances are correlated with a decline in the asset’s price.

Also read: Maker price climbs 16% in a week, outperforming other altcoins with increasing DAI supply

Maker selling pressure rises on higher supply

FalconX transferred $12.8 million worth of MKR tokens to exchanges over the past week. According to data from Lookonchain that tracks recent transactions, the firm sent the asset to centralized exchanges OKX and Binance, contributing to the rise in the asset’s supply.

FalconX moves MKR holdings to exchanges

The firm’s move coincides with a decline in MKR price and a rise in MKR supply on exchanges. FalconX therefore appears to be selling the token.

Maker supply on exchanges continues climbing

Data from crypto intelligence tracker Santiment also points to an increase in MKR reserves across crypto exchanges. Between September 5 and October 30, MKR balance on exchange platforms climbed 35%, from 68,516 to 92,776 tokens. The increase in MKR supply on exchanges contributes to rising selling pressure and a subsequent decline in MKR price.

Over the past week, Maker protocol’s token yielded more than 2% losses for holders, according to price data on Binance.

Maker supply on exchanges against MKR price between September 5 and October 30

At the time of writing, MKR trades at $1,415 on Binance.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram