The cryptocurrency market is currently experiencing significant activity, especially from large investors known as crypto whales.
These whales, who hold substantial amounts of digital assets, are focusing on three key altcoins: Ethereum (ETH), Pepe (PEPE), and Ondo (ONDO).
This article examines why these altcoins are gaining attention and what it could mean for the market.
Also read: Over 16M Wallets Now Hold 10 BTC Each
The Impact of Whale Activity on Prices
When crypto whales start purchasing a particular asset, it often signals a potential price increase.
Their large buys can boost the confidence of smaller investors, leading to more purchases and further driving up the price.
However, if these whales sell, it could result in a sharp decline.
Ethereum (ETH): Positive Indicators
Ethereum, second after Bitcoin is a leading ecosystem for smart contracts. Lately, there's been a significant rise in large holder net flow within this network.
Holder net flow refers to the difference between the amount of ETH bought and sold by major investors.
Data from IntoTheBlock shows a 167% increase in this net flow over the past week.
Ethereum Large Transactions Volume | IntoTheBlock
Large holders are defined as wallets holding more than 0.1% of Ethereum’s circulating supply.
Increased net flow suggests that whales are accumulating more ETH, potentially leading to higher demand and price increases.
Pepe (PEPE): A Growing Meme Coin
The frog-themed meme coin Pepe is also attracting whale attention.
According to data from Santiment, there are now 85,400 addresses holding between 10,000 and 10 million PEPE tokens, the highest since its launch in April 2023.
PEPE daily active addresses | Santiment
Despite price consolidation, the number of whale holders has grown by 12% over the past month.
The Market Value to Realized Value (MVRV) ratio indicates that PEPE is currently overvalued, allowing investors to profit. However, if selling outpaces demand, the price of PEPE could fall.
Ondo (ONDO): Increasing Governance Token Interest
Ondo (ONDO), the governance token of Ondo Finance, is gaining traction among whales.
Large transaction volume on ONDO | IntoTheBlock
Over the past 30 days, large holder inflows have increased, indicating that major investors are buying ONDO.
This could lead to a price rise if the trend continues.
Understanding Crypto Whales
Crypto whales are individuals, groups, organizations, or large wallets that hold significant amounts of cryptocurrency.
Their actions can significantly influence market dynamics.
Notable crypto whales include:
- Satoshi Nakamoto: The anonymous creator of Bitcoin, believed to hold around 1 million BTC.
- Michael Saylor: CEO of MicroStrategy, known for his significant Bitcoin investments.
- Elon Musk: CEO of Tesla, whose actions can sway market sentiment.
Tools like WhaleStats and WhaleAlert help track the movements of these whales, offering insights into their trading activities.
Conclusion
The increased interest from crypto whales in Ethereum, Pepe, and Ondo suggests a potential bullish trend for these assets.
Whale activity often boosts confidence in crypto assets, attracting more buyers and possibly leading to price increases. However, there is always the risk that sell-offs could negate any gains.
As the crypto market evolves, these altcoins are likely to remain in the spotlight for both large and small investors.