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According to Santiment, the decline in overall whale activity across most crypto assets has become more and more noticeable. Recent on-chain data highlights a significant drop in the number of whale transactions, or large transactions, referring to those above $100,000 for major crypto assets Bitcoin and Ethereum.
Data from Santiment reveals a stark contrast in whale activity between March and August 2024. During the week of March 13-19, Bitcoin recorded an impressive 115,100 whale transactions, each valued at $100,000 or more. However, by Aug. 21-27, this number had almost halved to 60,200 transactions.
Tomiwabold OlajideEthereum saw an even more dramatic drop. In the same week in March, Ethereum whales also conducted 115,100 transactions. By late August, this figure plummeted to just 31,800 transactions, indicating a larger decrease in whale transactions.
Is it concerning?
A decline in whale activity might initially appear as a bearish signal, suggesting that large investors are stepping back or offloading their assets. However, it is essential to approach this data with nuance. A decline in large transactions does not necessarily equate to whales dumping their holdings or signaling an imminent price drop.
Historically, whale activity tends to spike during periods of high volatility, whether it is a market rally or a sharp decline. The current decline in large transactions could indicate a period of consolidation, where whales are holding their positions rather than actively trading.
Santiment added that overall, among activity by whales, there remains a steady flow of accumulation despite fewer overall transactions.
August closed in the negative for most crypto assets; Ethereum closed the month down 22.6%. Expectations remain bearish for September, which is typically bearish not just for crypto but across all asset classes.
Yuri Molchan
Denys Serhiichuk