Whales Turning to Small-Cap Altcoins: Are Large-Cap Coins at Risk?
• Bitcoin whales have shifted their focus onto the small-cap altcoins, with major transactions occurring in tokens such as Rocket Pool and Phala Network.
• This shift in whale activity has led to speculation that a low-cap altcoin rally may be on the horizon.
• The high gas fees associated with these lesser-known altcoins suggests that whales may be moving away from large-caps towards mid & small-cap coins.
Whales Shifting Focus to Small-Cap Altcoins
The crypto markets are experiencing a sharp decline, with Bitcoin prices sliding and Ethereum holding steady above $1,900. However, it appears that the whales have sensed an incoming trend and are shifting their focus onto smaller, or lesser known altcoins. On-chain analysis platform Santiment reported heavy transactions taking place on tokens such as Rocket Pool and Phala Network, with more than 70 transactions worth over $100K taking place at local highs of $61.89 for Rocket Pool and 308 million PHA transferred worth nearly $53 million to a new non-exchange address for Phala Network – the 3rd largest since it began trading publicly in 2020.
Speculation of Low-Cap Altcoin Rally
The whale activity related to small cap altcoins has sparked speculation of a low-cap altcoin rally in the near future. Additionally, higher gas fees associated with these lesser known tokens suggest that whales may be diverting away from large caps and turning towards mid & small cap coins instead.
Market Bleeding & Round of Whale Accumulation
Despite this apparent shift in whale behaviour, the overall crypto market continues to bleed as traders fear rounds of whale accumulation could pull them away from top cryptos like Bitcoin and Ethereum.
What Does This Mean for Large Cap Coins?
As more capital is poured into smaller coins by whales through large transactions, larger cap coins could potentially suffer due to increased competition from these alternative investments which offer greater returns due to lower valuations compared to those of established coins like Bitcoin or Ethereum.
While it remains uncertain how this shift in whale behaviour will affect large cap coins, what is clear is that there is heightened interest in smaller coins which could lead to a potential low-cap altcoin rally soon enough – something traders should keep an eye out for going forward!