The crypto market started this week on a sluggish note, with many coins struggling to gain traction. However, one crypto that has been particularly hard hit is Maker (MKR), which has plunged by around 10% in value, making it the biggest loser among the top 100 coins by market capitalization. So, what’s behind this steep decline?
According to reports from SpotOnChain, a prominent on-chain analysis firm, the MKR price plunge can be attributed to the actions of two major whales who have offloaded a significant amount of their MKR holdings in the past few hours.
The first whale, identified as 0x09e/0xdbb, recently deposited 1,480 MKR (worth approximately $4.23 million) to Binance at an average price of $2,856. This deposit allegedly marks the end of the whale’s first MKR trade, which yielded a substantial profit.
As per SpotOnChain’s analysis, this whale had previously withdrawn 3,201 MKR from MEXC at an average cost of only $1,760 (totaling $5.63 million) between January 2 and January 11, 2024, using two wallets (0x09e and 0xdbb). Subsequently, the whale deposited 3,192 MKR to Binance at an average price of $2,868 ($9.15 million), realizing an estimated profit of $3.54 million, or a staggering 63% return on investment after holding for four months.
The second whale, identified as 0x637, sold the remaining 350 MKR for 325.25 ETH (worth approximately $1.04 million) at an average price of $2,961 in the past hour. This transaction marks the end of the whale’s first MKR trade, which also resulted in a substantial profit.
According to SpotOnChain, this whale had initially bought 1,047 MKR using $772,000 worth of ETH and stablecoins at an average price of $737.6 between March 19 and November 13, 2023, primarily around the former date when the price was low.
The whale then sold 1,046 MKR for $2.63 million worth of ETH and stablecoins at an average price of $2,515 between May 6, 2023, and April 29, 2024. This trade resulted in an estimated profit of $1.86 million, representing a remarkable 241% return on investment after over a year of holding.
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Show more +These substantial sell-offs by two major whales appear to be the primary reason behind the recent price plunge of MKR. As these whales liquidated their positions, it likely created significant selling pressure, causing the token’s value to decline sharply.
It’s worth noting that these reports come from SpotOnChain, a reputable on-chain analysis firm known for its in-depth insights into cryptocurrency market dynamics. The firm’s ability to track and analyze whale movements and transactions provides valuable insights into the factors influencing price movements in the crypto space.
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