New statistics indicate that there are significantly fewer transactions with whales using Bitcoin and Ethereum, raising concerns about the rest of the crypto market. According to a report, during the week of March 13-19, Bitcoin recorded 115,100 transactions of over $100,000. However, this figure reduced dramatically, reaching only 60,200 from August 21 to August 27. Similarly, Ethereum whale transactions dropped drastically to 31,800 in late August from 115,100 in March. Such changes point toward distinct behavioral patterns in whales, eliciting concerns about how these may affect the market.
The decline in large-scale transactions is not isolated to Bitcoin and Ethereum. XRP and Cardano have also seen reductions in whale activity. XRP’s transactions dropped significantly after peaking in June, stabilizing just above 1,000 by September 2. Cardano followed a similar trend, with large transactions decreasing to 1,867 by early September. Meanwhile, Toncoin’s whale transactions have remained consistently low, showing minimal fluctuation over the same period.
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Understanding the Shift in Whale Behavior
While it is true that there may not be as much activity among whales, its importance should be seen in the context of these points. This means a decrease in large transactions does not necessarily equate to bearish territory. In the past, top addresses have also been identified to be more active, especially during periods of high market volatility. The current low level of trading might indicate whales being inactive and not trading as often as they accumulate.
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Such a view is supported by the data from Santiment, which implies that, while the transaction numbers are declining, the whales continue to collect Bitcoin and Ethereum. This also means that even though their activity level may seem low regarding the number of transactions, they hold considerable sway in the market. Thus, lower transaction levels may be just the reaction to the long-term plan and not a sign of poor prospects.
Source: Santiment
Conclusion
The recent decline in whale transactions across Bitcoin, Ethereum, XRP, and Cardano marks a significant shift in market behavior. However, this does not necessarily signal a negative trend. Instead, it may indicate a strategic adjustment by large investors, with continued accumulation suggesting confidence in the long-term potential of these cryptocurrencies. As market conditions evolve, the actions of these key players will likely remain a crucial factor in determining the future direction of the cryptocurrency market.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.