Main/News blog/What the Market Maker is buying

What the Market Maker is buying

26/08/2024

Authors: CryptON

#Earning Strategy

#Research and Analysis

Who are Market Makers

Who are Market Makers? Could they be ruthless and heartless whales trying to take your crypto? Let's explore this without labels and see just how important market makers are for the crypto market and how tracking their actions can help you build capital.

A Market Maker is a key player in the market. They are the ones providing active trading and liquidity. When you want to buy cryptocurrency, you need a counterparty, a seller. Conversely, when you sell, you need a buyer.

A Market Maker is the main provider of liquidity and active trading. Thanks to them, the order book is filled instantly, allowing for quick buying/selling of assets.

You might often notice how, on low-liquidity assets, you have to wait for hours for an order to be fulfilled. This is a great example of how the absence of a market maker complicates the buying or selling of cryptocurrency.

So, do you need a Market Maker just to "buy or sell your assets?" Yes and no. The influence of market makers is far greater than you think. Read about the types of market makers and their functions in this article.

How to find Market Maker wallets

Finding Market Maker wallets is quite a challenge, but with the help of collections, you can find influential capital addresses in just a few clicks.

ArbitrageScanner’s collections is a large section where we have gathered wallets for you, including:

Top funds
Celebrities
Large holders
Protocol treasuries
Market makers
Smart traders

Additionally, in this section, you will discover public collections created and shared by our users.

How to analyze market maker wallets

Using the example of influential capital GSR Markets, which was also spotted in the pump of the Rare token, let's analyze the current purchases that could potentially become profitable.

RWA (Real World Assets) industry and Reserve Rights (RSR) token

The Reserve Rights cryptocurrency is a payment system asset creating a stable decentralized asset with full backing. It aims to address issues of hyperinflation and unreliable banking infrastructure.

The Reserve system operates with three types of tokens:

RSV – a stable cryptocurrency that can be used like traditional fiat
RSR – a token that ensures the stability of RSV
Tokenized assets – real assets, such as other stablecoins, which aim to maintain the value of RSV through smart contracts.

This project is connected to the tokenized asset industry and offers solutions for value storage and payments.

Reserve Rights (RSR) price

As of 08/25/24, the asset's value is $0.0062:

The asset has corrected by -93% from its all-time highs (ATH). Since May 2022, the asset has been trading in a narrow range, with clear upper and lower boundaries. It has been in this range for over 840 days:

Who is buying RSR in large volumes

One of the GSR Markets wallets, with a balance exceeding $19M, has a turnover of $36.14M in RSR tokens:

You can explore the wallet yourself here.

TIP:

Turnover – the total amount of trades in dollars for the asset

You can view this parameter on a separate token page. To access it, just click on the token ticker, for example, from the portfolio.

Besides turnover, pay attention to the turnover in tokens – this is the total amount of tokens moved during transactions.

By analyzing token turnover, you can calculate what percentage of the total volume passed through a specific address.

Information on circulating volume, as well as total volume, can also be found on a separate token page:

For example, this wallet’s token turnover amounted to almost 13% of the circulating supply: 6.62B/51.06B ~ 0.13 or 13%. This, in turn, indicates a large volume of controlled issuance.

In the past month alone, specifically since August 15, $4.9M in RSR tokens has been received by the wallet:

List of wallets from which funds were received in August:

TIP:

When analyzing transactions, use search filters.

Available filters for examining transactions for a specific token include:

Transaction Type

Minimum Volume

Transaction Date

You can also immediately jump to analyzing wallets from history without leaving the current page. Use the search bar for this purpose.

The search bar is a feature that allows you to quickly analyze a specified address.

To analyze wallets using the search bar, follow these steps:

Copy the address you want to examine in detail:

Open the search bar by pressing the F key:

Enter the copied address into the search bar:

Perform the search by pressing Enter and you will be taken to the wallet page:

What the market naker is doing with RSR token now

By applying the transaction type "sending", we get the following picture of transfers for August:

Since August 15, the following wallets have appeared in the chain:

Wallet 0x06a holds 67.42M RSR worth $427K
Wallet 0xF8a holds 1.09B RSR worth $6.62M
Wallet GSR Markets Binance Deposit (0xE69) sent 68.9M RSR worth $405K to address Binance Hot Wallet (0x28C) – Figure 7

Thus, as of August 25, the Market Maker has acquired 1.2B RSR tokens worth $7.4M using several of its addresses, and has sent only a small portion to Binance Exchange.

How the price of RSR has changed since active withdrawals by GSR Markets

Starting from August 15 to the current day (August 25, 2024), the RSR price has increased by +60%:

The asset's value has significantly increased, with a peak growth of almost +80%. By noticing such movements and assessing the risks, one could have taken good profits from this instrument, which seemingly hasn't finished its momentum yet.

Layer 2 and the Metis Token

Layer 2, also known as a second-layer solution, refers to protocols that operate on top of the base layer of the network. This technology aims to enhance the speed and scalability of the underlying blockchain.

We discussed in more detail what Layer 2 is in this article.

Metis is a solution that improves network scalability and addresses the three main challenges of blockchain: decentralization, security, and scalability. The platform helps developers create and manage decentralized applications (dApps) and supports the transition from Web 2.0 to Web 3.0 using the Decentralized Autonomous Company (DAC) framework.

Metis Price

As of 25.08.24, the asset's price has corrected by -87% from its all-time high (ATH) and stands at $39.39 per unit. It is currently trading below the rising internal trendline:

Who Is Buying Metis Tokens

Previously, the token had shown a 1300% increase since October 2023. However, it has now corrected by -73% from its local highs. Despite this, large capital, particularly GSR Markets, has not lost interest in this asset.

Since August 14, the market maker, using several of its wallets, has been acquiring the asset and transferring it to CEX exchange deposit addresses.

For example, from the wallet 0xEf3, 20K Metis was transferred to the address 0xA18

These were then moved to CEX exchange deposit wallets:

The wallets to which Metis was transferred include:

What the Market Maker Is doing with Metis now

After receiving the tokens at the addresses listed above, the market maker sent them to the exchanges' hot wallets. Since the behavior pattern is consistent, we can simply review the transaction history of any of the CEX deposit addresses. For example, when funds are received at GSR Markets Binance Deposit (0xE69), the assets are transferred to the Binance Hot Wallet (0x28C):

Thus, since August 15, 0xA18E has transferred $422K worth of Metis, or 14K Metis, to centralized exchange addresses.

How Metis' price has changed since GSR Markets' active involvement

Since August 15 until the current date (25.08.24), Metis has shown a +29% increase:

How to be the first to know what Market Makers are buying and profit from It

ArbitrageScanner is a comprehensive suite of on-chain analysis products. With wallet subscriptions, you can be the first to know what market makers are doing.

My Subscriptions is a powerful tool that sends you notifications about wallet activity directly to your Telegram channel.

Monitor large transactions and suspicious activity from high-profile players. Combine your hard skills with modern solutions to improve your trading and investment results. Read the detailed guide on how to set up subscriptions.

NOTE: The tokens mentioned in this article are not financial advice. Please manage risks and conduct your own analysis (DYOR).

You can also read our case study: How to Make Money with Whale Wallets