The latest data from Santiment shows that since December 30, 2022, the supply of Maker (MKR) on cryptocurrency exchanges has increased by more than 13%. Currently, cryptocurrency exchanges hold 8.63% of the token supply, up from 7% on December 30, 2022. early december.
Typically, an increase in the supply of a cryptocurrency on an exchange indicates that more investors are interested in selling tokens rather than holding them. This increases selling pressure, which leads to lower asset prices.
Despite the increase in exchange supply, $ MYRYear-to-date value up 75% #maker @azcoinnews https://t.co/gAybbhDtrw
— Kyptos (@azcoinnews) March 3, 2023
However, in the case of MKR, an increase in supply on exchanges coincides with an increase in price. According to data from CoinMarketCap, the value of MKR is up 75% so far this year, and the price is up nearly 40% month-on-month, while the rest of the market remains stagnant.
Despite this surge, many MKR holders are losing money as the MVRV ratio is currently below 1. The MVRV ratio is a metric that compares an asset’s current price to its actual price (i.e., its actual price). All units of an asset end up moving on-chain. When MVRV is below 1, it means that many holders are still holding their MKR at a loss and may experience additional selling pressure.
Overall, an increase in exchange maker supply is a development to watch closely, as it could indicate potential selling pressure and subsequent price drops. However, an increase in the value of MKR in the face of increased supply is a positive sign and investors will be watching the cryptocurrency’s performance closely in the coming weeks.
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according to Kyptos