Bitcoin, XRP See Declining Whale Activity: What It Means
September 03 2024 - 6:30PM
NEWSBTC
On-chain data shows Bitcoin, XRP, and other top cryptocurrencies
have been witnessing notably lesser activity from the whales
recently as compared to earlier in the year. Bitcoin, XRP Among
Assets Observing A Decline In Whale Transactions In a new post on
X, the on-chain analytics firm Santiment has discussed about how
the latest trend in the Whale Transaction Count has been looking
like for the various top coins in the sector. Related Reading:
‘Paper’ Bitcoin On The Decline: What It Means For BTC The “Whale
Transaction Count” here refers to an on-chain metric that keeps
track of the total number of transfers occurring on a given
cryptocurrency network that are valued at $100,000 or more.
Transactions of this scale are generally considered to have been
made by the whales, so the Whale Transaction Count represents the
amount of activity that these humongous entities are participating
in. When the value of the indicator is high, it means the whales
are making a large number of moves right now. Such a trend implies
that large players have an active interest in trading the asset. On
the other hand, the metric being low implies the whales may not be
paying much attention to the cryptocurrency as they aren’t making
too many moves on the blockchain. Now, here is a chart that shows
the trend in the Whale Transaction Count for five top coins,
Bitcoin (BTC), XRP (XRP), Ethereum (ETH), Cardano (ADA), and
Toncoin (TON), over the last few months: As displayed in the above
graph, the Whale Transaction Count had been at pretty high levels
for Bitcoin and Ethereum back in March. More specifically, between
the 13th and the 19th of the month, BTC and ETH had both seen
around 115,000 whale transfers. This high activity from the whales
had come right after Bitcoin’s all-time high (ATH) price,
suggesting that these large holders may have possibly been making
the moves to cash in on the rally. In the months since then, the
metric has registered a rather notable drop. Bitcoin has seen
60,000 whale transactions recently, while Ethereum’s drawdown has
been even more significant as the indicator has stood at just
32,000. Related Reading: Bitcoin Eyes $68,000 In September: Could
This Be The Turning Point? The likes of XRP and Cardano hadn’t seen
anywhere near as high whale activity in March as these top two
coins, but the levels back then were still noticeably higher than
today, suggesting whales across the sector have paused their
trading activities. As for what this could mean for the various
assets, a lack of whale activity can lead to a more stale market,
as it’s the large volume from these entities that fuel volatility.
Thus, Bitcoin and other coins may see their consolidation continue,
as long as the whales remain still. BTC Price Bitcoin had plunged
towards the $57,000 level yesterday, but the coin has seen a bounce
today as it’s back around $59,000. Featured image from Dall-E,
Santiment.net, chart from TradingView.com
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