- Whale transactions valued at greater than $10 million have emerged across altcoins AAVE, APE, COMP, IMX and LDO among others.
- Large wallet investors are contributing to the rise in price volatility in these altcoins, signaling incoming correction.
- Bitcoin remained range-bound at the open of the Asian trading session, DeFi tokens continued battling the CRV-triggered crisis.
Bitcoin price was range-bound below the psychological barrier at $30,000 at the start of the Asian trading session. The Curve-exploit related DeFi crisis fueled volatility in AAVE and COMP among other tokens.
Whale activity, typically considered bullish for assets, has climbed. Several transactions valued at $10 million or higher have emerged. However, given the state of Bitcoin and the DeFi ecosystem, a pullback or correction is likely in these tokens.
Also read: AAVE community to vote on proposal that could determine future of CRV and DeFi as we know it
Whales make moves en masse in AAVE, APE, COMP, IMX and LDO
Analysts at crypto intelligence tracker Santiment have observed a notable increase in large wallet transactions, valued at $10 million or higher across various altcoins on Thursday. While investors are bored awaiting volatility in large market capitalization assets like Bitcoin and Ethereum, altcoins have emerged as a volatile alternative.
Whale activity is typically associated with a rise in prices, however, profit-taking by investors is likely to increase pressure on altcoins. AAVE (AAVE), ApeCoin (APE), Compound (COMP), Immutable (IMX), LidoDAO (LDO) and Measurable Data Token (MDT) are the altcoins with rising activity.
Altcoins with massive whale activity
The Santiment Top Transactions Model recorded significant activity in these altcoins. Traders hunting for volatility are watching these altcoins for profit-taking opportunities, since some whale moves are the largest ones seen in 2023.
Amidst the brewing crisis in DeFi, where experts compare Curve Finance founder Michael Egorov’s behavior to typical observations made in traditional finance, massive whale activity in tokens like AAVE and COMP can be considered indicative of an upcoming decline. Find out more about the Curve Finance exploit here, as well as the founder’s attempts to shore up liquidity and protect CRV token’s price from further downfall here.
Why whale activity in altcoins is key to Bitcoin’s next move
It can be argued that whales are likely scooping up these altcoins at lower prices in the ongoing correction, however the key is to look for fresh capital inflow to cryptocurrencies. Demand from market participants is likely to determine the price trend of Bitcoin and altcoins in the near future.
Curve Finance founder Michael Egorov’s efforts to shore up liquidity for CRV have ushered capital into DeFi tokens and DEX tokens, however the whale activity in altcoins could be a game changer for alternative cryptocurrencies.
Market participants are closely watching Bitcoin’s next move, which is currently challenging to predict with the price below the $30,000 level.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.