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The price of Maker (MKR) has dropped by 17% since October 23, when the rise of the cryptocurrency markets began. On-chain analysis reveals that despite the positive trend in the wider crypto market, the main MKR price has been declining.
Price Prediction for MKR!
The price of the MRK token issued by MakerDAO has seen a sharp decline since the cryptocurrency market started to rise. The upcoming MKR price movement can be expected as institutional investors show less interest in MakerDAO’s various DeFi ecosystems.
MakerDAO garnered attention by announcing an 8% return on DAI savings in August. However, MakerDAO has emerged as one of the significant losers amidst the ongoing rise in the cryptocurrency markets. As institutional investors shift their focus to Bitcoin and Ethereum Spot ETF applications, the crypto market entered a bull rally in late October. However, since then, the native MKR token has witnessed a significant decrease in whale demand.
According to on-chain data from Santiment, the cumulative balance of MakerDAO whales (wallets holding 1,000 to 100 million MKR tokens) was 828,000 MKR. However, after three weeks of selling, crypto whales held only 821,000 MKR as of November 10.
The Whales wallet balance metric tracks real-time changes in the number of tokens held by crypto whales. Currently valued at $1,350, the dumped 7,000 MKR tokens amount to approximately $1 million. This decrease in whale balances may indicate that institutional investors are exiting the MakerDAO DeFi ecosystem to generate greater profits from more volatile assets. If whales continue to sell, MKR’s price may struggle to recover from the current pullback phase.
Critical Report on MKR
Another critical factor behind the recent price drop of MKR is the bearish trading activity observed by derivative analysts. According to Coinalyze, investors have withdrawn a significant amount of capital from MKR futures contracts in the midst of the rise in the crypto market.
When the rally in the crypto market began around October 23-24, MKR’s open positions were approximately $96 million. As of November 10, this figure has dropped to just $54.5 million, indicating a rapid withdrawal of $41.5 million in capital from MKR futures contracts in the past three weeks.
