Kaspa's price plunged to the $0.065 range amid a market downturn. We examine MEXC's role in this process.
MEXC's Influence on Kaspa Market
Recent data from Kaspalytics highlighted MEXC's impact on the Kaspa market. When MEXC paused wallet operations, Kaspa's daily active supply fell dramatically from 5.04% to 0.76%, showcasing the exchange's significant market influence.
Daily Active Supply Explained
Daily active supply includes part of the Kaspa UTXO set with an estimated age less than 24 hours. The influence on Kaspa’s spot price suggests potential price manipulation by MEXC.
Market Implications and Community Response
While one exchange controlling 85% of daily activity raises concerns, the Kaspa community is rapidly developing decentralized exchanges. This could reduce centralized platforms' influence and help balance the KAS distribution.
MEXC’s actions have only a temporary effect on Kaspa’s price. Further development of decentralized exchanges may strengthen network decentralization and economic diversity.
