• Whale activity in small and mid-cap altcoins has been increasing, signifying a possible low-cap rally.
• On-chain analysis from Santiment showed that whales have been transferring large sums of money to lesser known coins such as Rocket Pool and Phala Network.
• These tokens were leading the gas fees for transactions, further indicating the whales’ focus on smaller cap coins.
Whales Shift Focus to Small-Cap Altcoins
The crypto markets have been plunging recently, with Bitcoin prices sliding below $28,000 and Ethereum price sticking above $1900. However, it appears that whales have sensed the incoming trend and are now shifting their focus onto the other altcoins. On-chain data from popular analytical platform Santiment shows heavy activity in tokens like Rocket Pool (with a market cap of nearly $900 million) and Phala Network (which saw 308.2 million PHA worth nearly $53 million transferred to a new non-exchange address). This indicates that whales are accumulating these smaller cap coins in preparation for an upcoming low-cap altcoin rally.
High Gas Fees
Another sign of whale activity is the high gas fees being paid for transactions involving these smaller cap coins. Surprisingly, some platforms recorded higher gas fees than those associated with Ethereum or Wrapped ETH or USDT – instead tokens like TROLL, APED, and BOBO had the highest fee rates. This suggests that whales may be taking advantage of cheaper transaction costs by trading these lesser known altcoins instead of more established ones.
Should Large-Cap Coins Be Worried?
The shift in whale attention towards small & mid cap altcoins could mean an upcoming bull run for them – however it also raises concerns about what this means for large cap coins like Bitcoin or Ethereum. Will these currencies continue to dominate the markets or will they eventually be overtaken by their less popular counterparts? Time will tell how things play out but one thing is certain: investors should always be prepared for potential shifts in trends when it comes to cryptocurrency markets.
It’s important to note that investing in cryptocurrencies can be risky due to their volatile nature – so risk management is essential when trading any type of asset within this space. It’s important to keep track of news & updates regarding any coin you may be interested in investing in order to stay informed about potential changes ahead of time; this will help reduce your risk exposure while potentially maximizing returns if managed correctly.
Whales seem to have shifted their focus towards small & mid cap altcoins which could indicate an upcoming bull run soon – however investors should always practice caution when dealing with cryptocurrencies due to their volatile nature & unpredictable market movements . Risk management strategies should always be employed when trading so as not to overexpose oneself financially while still having the potential for strong returns if done correctly