The Exchange Whale Ratio by Crypto is an intriguing metric that evaluates the relationship between the Top 10 Inflow and the Inflow Total over a 72-hour period to smooth out this interaction. When values are close to 100%, it indicates that whales are more active and dominating the influx on exchanges, which can result in significant price volatility in cryptocurrencies.

When comparing various cryptocurrencies in this context, we arrive at interesting conclusions:

In the case of Bitcoin, 96% of the influx on exchanges is attributed to whales (Top 10 Inflow), while for Ethereum, this number is only 11.45%.

Altcoins like NMR, ENJ, YFI, and CHZ show similar indices to Bitcoin, suggesting that whales dominate the influx on exchanges for these coins.

Conversely, altcoins such as AAVE, SHIB, and MATIC have a more balanced influx between Inflow Total and Top 10 Inflow (whales).

A possible explanation for the lower influx in some altcoins may be related to their nature of decentralized trading, particularly in second-layer solutions, which may explain the comparatively low levels observed in Ethereum compared to Bitcoin.

Furthermore, Ethereum being a Smart Contracts platform expands its trading universe beyond centralized exchanges, which may influence less interaction from whales on exchanges.

Constant evaluation of the Exchange Whale Ratio by Crypto can assist investors in estimating potential price volatility, making this sentiment metric relevant to the market.

Written by joaowedson