Maker's [MKR] supply on exchanges has climbed by 13%, but here is the catch

Per data from Sanbase, MKR's supply on exchanges has been on the increase since 30 December 2022. Since then, this has grown by over 13%. Currently, 8.63% of the token's supply is housed on crypto exchanges. At the beginning of December 2022, this was a mere 7%.

Source: Sanbase

Generally, when the supply of a cryptocurrency on exchanges grows, it means that more of that cryptocurrency is being held by exchanges and is available for trading. This happens when more investors are more interested in selling off their tokens rather than holding them. This invariably heightens selling pressure, which can drive down the price of an asset.

Interestingly, for MKR, while its supply on exchanges rallied in the last two months. Its price grew as well. According to CoinMarketCap, on a year-to-date, MKR's value has increased by 75%. In fact, while the rest of the market traded sideways in the last month, MKR's price spiked by almost 40%.

Source: CoinMarketCap

However, with the MVRV ratio pegged below 1, many holders continue to record losses on their MKR holdings despite the growth in price.

Source: Sanbase

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