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.
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