A Cartesi whale’s recent action has gained huge attention from the crypto community as a trader dumped almost a quarter billion worth of CTSI tokens yesterday. This massive sale raised questions among traders and investors about the health situation of the Cartesi market and why the whale is dumping his CTSI holdings.
According to a crypto analyst on the X platform, the whale sold 24 million Cartesi (CTSI) tokens (worth $3.59 million) to Binance yesterday. Data shows that the tokens sold are worth 2.85% of CTSI’s circulating supply. The whale still has 10 million CTSI tokens (worth $1.52 million) in his wallet.
This is a negative sign for the CTSI market. Whenever an exchange reserve increases, it causes selling pressure and triggers a price reduction. However, such massive dumping happens when the overall crypto markets are in a dip since the beginning of this month.
1 hour ago, a wallet 0xC71 (may belong to team / early investor) deposited 24M $CTSI (~$3.59M) to #Binance.Those tokens is worth 2.85% Circulating Supply.Just now, he still has 10M $CTSI (~$1.52M) in his wallet.Address:https://t.co/7i65v70FwI pic.twitter.com/KoAyJnuPCN
— The Data Nerd (@OnchainDataNerd) December 22, 2024
Why are investors dumping CTSI?
The move by the whale to sell part of CTSI holdings happened at a time when the uptrend momentum of the broader markets cooled down. There is no other report about whales engaging with Cartesi in the recent past, apart from the case above.
The trader’s activity could have been part of a profit-taking agenda or a portfolio diversification strategy. However, huge sales from whales normally can cause concerns among retail investors and even drive prices down. CTSI’s trading volume has been down 14.40% to 12.6 million in the last 24 hours, indicating a recent decrease in market activity.
The decrease in trading volume reinforces the idea that the downward movement is influenced by selling pressure. However, market dynamics are part of the reason for CTSI’s moderate downward movement.
Most digital assets, including BTC and altcoins, are currently in decline as part of the wider market correction, triggering panic selling among investors. The ongoing consolidation in the market reflects the fragility experienced in US stocks.
This decreased performance of the broader investment markets highlights the effect of lending rate cuts on the valuation of corporations listed on the US stock exchanges. Last week, on Wednesday, the Fed reduced lending rates by 0.25%, causing shock waves on risky assets like stocks and cryptocurrencies, which are typically sensitive to interest rate changes.
CTSI price movement
Cartesi’s price dropped 22.5% in the last seven days, meaning the token is underperforming the global digital asset market which is down 8.60% currently. CTSI is currently trading at $0.1494, down 19.39% over the last year. However, its market cap of $125.92 million makes it number 392 in the entire crypto ecosystem.
Its incredible performance has set it apart in the wider crypto market. Its roll-up technology as a potential solution to Ethereum’s struggles with increased transaction fees and network congestion is part of the key reasons Cartesi garnered recognition in the market. By rolling up transactions off the Ethereum chain and transitioning streamlined data back to the protocol, Cartesi offers a potential gateway for significant speed improvements at decreased costs. Its market resilience signals its widespread adoption and recognition as the crypto community, especially developers, looking for efficient solutions to Ethereum’s scalability problems.
