MKR’s supply on exchanges has reached its lowest point in the last three months, contributing to the upward momentum in its price.
Maker (MKR) witnessed a noteworthy surge in activity in the first week of the year. The crypto asset climbed to $2,140, a level not seen since April 2022.
As a result of the price action, MKR’s monthly gains surged to exceed 50%. This impressive rise seems to be associated with the accumulation of MKR by substantial wallet addresses.
MKR’s January Rally: Reduced Exchange Supply Fuels Demand
Maker started the year on a bullish note. In fact, recent data from Lookonchain revealed that large wallet addresses have been actively accumulating MKR tokens throughout January 2024.
Ten wallets were identified to have collectively acquired a staggering 32,759 MKR tokens, valued at approximately $66.66 million. This acquisition represented a substantial 3.55% of the MKR circulating supply, and interestingly, it has been achieved by pulling these tokens directly from exchange platforms.
The latest transaction of MKR withdrawal activity was recorded on January 15th, involving a user withdrawing 12,103 MKR worth a whopping $24.63 million from an exchange.
The large-scale accumulation signals a shift in investor sentiment, with this cohort of investors expressing confidence in MKR’s price trajectory. Moreover, the reduced supply of the token on crypto exchanges typically leads to increased demand.
Additionally, the total number of MKR holders reached an all-time high of 98,875 on January 9th. Despite a minor slump, the total holders are still above 98,800, according to data compiled by CryptEye.
Meanwhile, MKR’s price underwent a slight correction on a micro scale and was currently trading near $2,048.
MakerDao’s Endgame
While the SEC’s approval of a spot Bitcoin ETF, which attracted capital inflow into the market, is one of the primary reasons for increased optimism, MakerDAO’s “Endgame” proposal has also bolstered the sentiment among MKR holders.
Designed by founder Rune Christensen, Endgame aims to achieve the widespread adoption of MakerDAO’s stablecoin, DAI, in the short term. It seeks to position DAI as one of the most used stablecoins within the next three years, all while maintaining governance balance.