Bitcoin, XRP See Declining Whale Activity: What It Means

Keshav Verma

1 year ago

2 mins read

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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 new post 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:

Bitcoin, XRP Whale Transaction Count — The value of the metric appears to have been going down for all of these coins recently | Source: Santiment on X

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.

Bitcoin Price Chart — The price appears to have rebounded off its latest lows | Source: BTCUSD on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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