One cryptocurrency business cautioned that altcoin prices might fall even more over the weekend due to low trading volumes and less activity from market makers like Binance.
Blockchain data suggests that significant market makers Jump Trading and Cumberland may have delivered millions of dollars worth of polygon (MATIC) to cryptocurrency exchanges on Friday night, just before the market dropped about 30%.
On Saturday, Lookonchain, a cryptocurrency analytics business, tweeted many times that Cumberland had deposited 9 million MATIC to Binance, valued at over $6.3 million, and 5 million MATIC to Coinbase, worth over $3.5 million.
The company said an additional $9.4 million were posted to cryptocurrency exchanges from a wallet connected to Cumberland, Jump Trading, and Robinhood.
Due to the lack of liquidity in the market, these deposits were likely sold on cryptocurrency exchanges, causing a steep drop in the value of MATIC tokens. Cardano (ADA) and Solana (SOL) coins both saw price drops of up to 25% during the previous day.
This week, many complaints were filed with the U.S. Securities and Exchange Commission (SEC) against the cryptocurrency exchanges Binance and Coinbase, alleging that the tokens traded on such platforms are securities.
Matrixport, a provider of cryptocurrency services, predicted in a letter to CoinDesk that key coins will continue to lose value over the weekend.
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