Maker (MKR) price turns bearish as exchange supply soars

October 31, 2023 12:04 AM AEDT | By Invezz
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Maker Protocol’s token MKR has seen a surge in supply across crypto exchanges. Meanwhile, trading firm FalconX contributed to the increase after sending coins worth around $13 million to Binance and OKX within the last seven days.

Generally, cryptocurrencies mirror reserve surge with a price dip. MKR lost over 5% within the past week

MKR 7-Day Chart on Coinmarketcap

Maker sees increased selling momentum

Lookonchain revealed that FalconX sent Maker tokens worth approximately $12.8 million to centralized exchanges Binance and OKX within the past week. That has lowered its MKR balance to 7,261 tokens while increasing the coin’s supply.

Meanwhile, the transfer coincides with the MKR price decline. Thus, FalconX could be preparing to sell the crypto.

MKR exchange supply remains elevated

Santiment suggests that MKR supply across exchanges has been soaring over the past few months. The metric increased to 92,776 from 68,516 between 5 September and 30 October, indicating a 35% surge.

Source – Santiment

The rising MKR reserves on exchanges translate to magnified selling momentum and subsequent price dips for the altcoin. It traded at $1,425.67 at press time. Meanwhile, Maker holders exhibited losses as the token dropped over 2% and 5.75% within the last 24 hours and seven days, respectively.

Understanding Maker DAO

Maker DAO is an Ether-based blockchain platform that issues the USD-pegged Dai stablecoin. Individuals who deposit Ethereum-based coins on the protocol receive Dai as a reward.

Meanwhile, stablecoins have seen surged demand lately, and Dai remains crucial as far as decentralized finance (DeFi) is concerned. Its acceptance will mean increased popularity for the Maker DAO protocol, boosting MKR prices.

The post Maker (MKR) price turns bearish as exchange supply soars appeared first on Invezz


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