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 newpost 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.
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.
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