Recently, the selling pressure on Bitcoin (BTC) has resulted in a tight trading range between $26,500 and $27,500. This has caused the trading volume and liquidity for Bitcoin to dry up, with exchange inflows reaching new lows. However, it seems that sharks and whales have shifted their attention and started accumulating altcoins and stablecoins, rather than focusing solely on Bitcoin.
On-chain data provider Santiment reports that while large holders’ Bitcoin holdings remain flat, their accumulation of stablecoins has increased, implying a bigger future buying power. The most popular stablecoins among these investors include USD Coin, Binance USD, and DAI Stablecoin, with $100k-$10m whale addresses holding 37% USDC, 6% BUSD, and 39% DAI.
Besides stablecoins, lesser-known altcoins have also been on the radar of sharks and whales. During May, these investors accumulated altcoins such as Porspoer $PRO, Banqi $QI, and Maker $MKR, with Santiment reporting that $100k-$1m tier wallets have accumulated these assets.
Another altcoin that has delivered a solid rally recently is Render Token (RNDR), gaining 63% over the last fortnight and jumping to the 45th largest cryptocurrency by market cap. On May 23, the RNDR price surged to $2.785 before experiencing profit booking. Investors should stay cautious, as Santiment noted that whale transactions surged to the third-highest over the past month.
Santiment explained that the key shark and whale RNDR addresses continue to rise in terms of their number of addresses, with wallets holding 1m to 10m RNDR particularly increasing rapidly. There are now 90 such addresses, the most in the asset’s history. If whales were to take profit, these numbers of addresses likely wouldn’t continue to surge.
To sum up, although Bitcoin’s performance has been somewhat subdued, it seems that large holders have not lost interest in cryptocurrencies entirely, instead shifting their focus to stablecoins and lesser-known altcoins. While this could have implications for the future cryptocurrency market dynamics, it also demonstrates that digital assets are far from losing their allure among sophisticated investors.
As always, it’s important for investors to do their market research before investing in cryptocurrencies, as personal opinions and market conditions can influence the presented content. The author and the publication hold no responsibility for any personal financial loss.