As the week winds down, the market caps of altcoins are seeing a significant upward push, driven by an increase in transactions by whales.
This week, we have seen a sharp increase in the number of transactions across differing networks that are above the $100K mark—a clear signal that high-net-worth individuals and institutional investors are taking a renewed interest in altcoins. Overall, the altcoin market appears to be undergoing a significant accumulation phase. What remains to be seen is if the broader market can keep up its recent upswing.
Whale trades may lead to larger market swings. When big players like institutional investors make whale trades, what do those trades say about the confidence these players have in the assets underlying those trades? When you’re moving as much volume as a whale generally does, making a trade indicates conviction in the trade’s direction. That might be leading to something else.
Top Networks Seeing Significant Whale Activity
Many projects in the altcoin market are currently enjoying high levels of activity from whale traders. Some of the projects benefiting most from this are Aave ($AAVE) on the Polygon network, Hex ($HEX), and OKB ($OKB). These tokens have seen their transaction volumes increase significantly, and this has a lot of people talking about these projects as potentially much stronger and healthier than several other of their peers in the altcoin space.
1. Aave ($AAVE) on Polygon: +267%
Aave, a leading decentralized finance (DeFi) protocol, has seen a massive 267% increase in whale transactions on the Polygon network. As one of the most recognizable names in DeFi, Aave’s rise could be due to both the growing adoption of its platform and increased activity on Polygon, which offers low-cost transactions and scalability. The large influx of whale transactions on Aave suggests that institutional investors are taking positions, possibly expecting continued growth in the DeFi sector and increased liquidity across the Polygon network.
2. Hex ($HEX): +256%
Hex, a high-yield cryptocurrency staking platform, has seen a whale transaction increase of 256%. Despite some volatility in the market, Hex’s unique staking model and high returns continue to draw large investors. The sharp rise in whale activity could signal that these investors are preparing for a potential breakout, with anticipations of further demand for staking products in the months ahead.
3. OKB ($OKB): +200%
OKB, the native token of the OKX exchange, has also seen a notable 200% rise in whale transactions. OKX has expanded its global presence, and its native token is benefiting from increased usage across the platform. This surge in whale activity indicates that large traders are anticipating further growth for OKB, as the platform gains momentum in the broader crypto ecosystem.
4. Cardano ($ADA): +193%
Cardano, a blockchain that intends to offer a more sustainable and scalable platform for smart contracts, has registered a 193% increase in whale transactions. We can only hope that this surge in whale interest is directly related to the unprecedented developments and enhancements that are ongoing in the Cardano ecosystem. Otherwise, we might be forced to alter our seemingly insatiable optimism for the future of this project.
5. Optimism ($OP): +140%
Whale transactions have increased by 140% for Optimism, a Layer 2 scaling solution for Ethereum. While the Ethereum network still suffers from scalability problems, solutions like Optimism have proven capable of providing much faster and much cheaper transactions. This contrasts with the current experience on the main Ethereum network. So, increased interest from whales could reflect confidence in Ethereum’s Layer 2 solutions and in Optimism’s position within that ecosystem.
6. TrillionerToken ($TLC): +133%
TrillionerToken, a fresh player in the crypto space, has experienced a spike of 133% in transactions made by whales. Although this token is quite new, the increase in large trades could be a sign that these wealthy investors are making rapid moves to accumulate this digital asset.
7. Bitcoin Cash ($BCH): +128%
Whale activity for Bitcoin Cash has increased 128%. Despite being a fork of Bitcoin, designed for faster and cheaper transactions, it has somehow maintained its presence in the otherwise dwindling space of altcoins. As you can see in the near 60% yearly gain since last November, even with the absence of an uptick in overall crypto enthusiasm, Bitcoin Cash is one of those coins with which you really should not be bearing average entry prices.
8. Curve Finance ($CRV): +100%
A 100% increase in Curve Finance whale transactions.
With DeFi continuing its growth, a recent upsurge of whale transactions at the decentralized exchange Curve Finance, seemingly optimized for stablecoin trading, could portend a not-too-distant future when platforms offering low-slippage, decentralized trading are much more prevalent—and much more essential.
9. BitDAO ($BIT): +100%
BitDAO, a decentralized autonomous organization (DAO) with a focus on decentralized governance, has also experienced a 100% uptick in whale transactions. This rise in whale activity could be a reflection of a burgeoning interest in decentralized governance models and the growing number of investors wanting to participate in the BitDAO ecosystem.
10. Gate.io ($GT): +100%
Gate.io’s native token, $GT, has seen a 100% upswing in whale activity. Whale transactions are a sign that big-time investors are moving tokens, and it can often be a precursor to significant price movement, either up or down. For Gate.io, the upswing in whale transactions surely serves as validation, signaling that major players are confident in the platform as a safe place to not just buy, but also to hold, tokens.
A Sign of Accumulation: What It Means for Altcoins
The increase in whale trades involving these altcoins is a strong sign that they are being accumulated—a situation that often precedes important price shifts. When big investors or institutions start really buying into a token, they create a situation of upward price pressure. And that is what appears to be happening, at least to a certain extent, across a number of these altcoins.
If these heightened transactions are a part of a larger trend of asset accumulation, then the following is likely: these altcoins are set to outperform when the market next moves either upward or downward. If it moves upward, then that should carry these altcoins with it; if it moves downward, then these altcoins conversely shouldn’t cumulate with any more downward movement since whales are already positioned with upward pricing targets in mind.
The weekend is nearing, and the market is still changing. Everybody is watching these networks to see if the apparent increase in whale activity is indeed an indicator of increased market volatility. Will the redeployment of these tokens in active circulation stimulate investor interest, and will it motivate a ‘next wave’ of momentum for tokens that were already on the move in 2020? Is this weekend and the next few weeks a decisive moment for altcoins in the present market?
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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