In one day, some altcoins had transfers of more than $10 million in value, as shown by data from the on-chain analytics firm Santiment. These big transfers usually happen on centralized platforms like exchanges, or by whale investors who have a lot of tokens in one transaction.
Whales matter a lot for any cryptocurrency ecosystem because they have so many coins that they can sometimes affect the market.
A few big transfers from a handful of whales may not have a noticeable impact on the market, but many huge transfers could cause some price swings.
Analyzing Whales Movement of the Day
Therefore, the asset price that the whales trade may be more prone to volatility when they are very active (meaning, several of them make many large transactions).
🐳 With #altcoins becoming significantly more volatile this past week, @santimentfeed data indicates that several assets have seen major transfers worth $10M+ today, easily making it a top 3 highest whale movement day of the year. Keep an eye on $MATIC, $CHZ, $CRV, & even $USDT. pic.twitter.com/ajRBctxGaw
— Santiment (@santimentfeed) June 28, 2023
The above graph shows that many altcoins experienced high-volume token transfers yesterday. Some of these transactions were worth more than $10 million, making it the third busiest day of the year for these alts.
These alts have also shown some volatility in the past week, which may have attracted the attention of the whales to trade these assets.
Large and frequent transactions by whales can affect the price stability of these cryptocurrencies. However, the impact of these transfers has been mixed for some of these coins, while others have remained in a narrow range.
One coin that stands out is Polygon (MATIC), which saw huge amounts moved by the whales, but the asset has barely changed by 1% in the past day. However, this does not rule out the possibility of future price fluctuations for the asset, so it may be wise to monitor the cryptocurrency closely.
In a related development, the holders of large amounts of Tether (USDT) have been making significant transactions lately, indicating that some major changes have been happening.
The purpose of these transfers is unclear, but they could imply that the whales are using the stablecoin to invest in other digital assets, which could boost their market values.