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On-chain data shows that Bitcoin, XRP, and other leading cryptocurrencies have seen significantly less whale activity recently compared to earlier in the year.
Bitcoin and XRP are among the assets seeing a decline in whale transactions
In new mail In X, on-chain analytics firm Santiment discussed how the recent trend in Whale transaction counts has been for several major coins in the sector.
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“Whale transaction count” here refers to an on-chain metric that tracks the total number of transactions occurring on a given cryptocurrency network that are valued at $100,000 or more.
Transactions of this size are generally considered to be whale transactions, so the number of whale transactions represents the amount of activity these large entities are involved in.
When the indicator value is high, it means that whales are making a lot of moves at the moment. This trend indicates that big players have an active interest in trading the asset.
On the other hand, a low metric suggests that whales may not be paying much attention to the cryptocurrency as it does not make many moves on the blockchain.
Now, here is a chart showing the trend in the number of whale transactions for five major coins, Bitcoin (BTC), XRP (XRP), Ethereum (ETH), Cardano (ADA), and Toncoin (TON), over the past few months:
As shown in the chart above, the number of whale transactions was at an extremely high level for both Bitcoin and Ethereum in March. More specifically, between the 13th and 19th of the month, both Bitcoin and Ethereum saw around 115,000 whale transactions.
This surge in whale activity came right after Bitcoin hit an all-time high (ATH), suggesting that these large holders may have been making moves to take advantage of the rally.
In the months since, the metric has seen a fairly significant decline. Bitcoin has seen 60,000 whale transactions recently, while Ethereum’s decline has been more significant, with just 32,000 transactions.
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Coins like XRP and Cardano did not see as much whale activity in March as these two leading coins, but levels at the time were still significantly higher than today, suggesting that whales across the sector have halted their trading activities.
As for what this could mean for different assets, the lack of whale activity could lead to a more sluggish market, as it is the sheer volume of these entities that fuels volatility. As such, Bitcoin and other cryptocurrencies could see their consolidation continue, as long as the whales remain quiet.
Bitcoin price
Bitcoin fell towards the $57,000 level yesterday, but the coin saw a recovery today as it returned to around $59,000.
Featured image by Dall-E, Santiment.net, chart by TradingView.com
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