The number of whales holding Ether increased significantly during the recent crypto market crash. There was a substantial increase in the number of new Ethereum addresses buying into the second largest blockchain network amid widespread panic in the market as prices continued to tank.
According to data obtained by crypto analytics firm, Santiment, there were at least 68 whales joining the Ethereum market at the beginning of September when the digital asset’s price fell by around 30%. Twitter user Ali Martinez brought to light this data indicating that investors with between 1,000-10,000 ETH holdings rose by 68 within just three days since the end of August. These are considerably huge amounts ranging between $340,000 and $3.4 million at the time of writing.
— Ali Martinez (@ali_charts) September 6, 2020
Interestingly, these whales accumulated their coins between Aug. 1 and Sept. 5 when ETH fell from $367 to $326, its monthly low. This implies that the whales potentially added millions to their holdings within a few days thus capitalizing on the panic fueled selloff witnessed in the crypto market during this period.
Crypto whales, generally used to refer to those holding significant proportions of circulating coin supply are historically known for behaving differently than the ordinary investors. Mostly, they go against the general trend in the market, buying when others are selling and selling when other investors are buying. Subsequently, they record massive profits by maximizing from the greed, fear and general sentiment of the market. Whales also have a reputation for influencing the crypto market with their moves usually sending tidal waves that sweep the entire crypto market causing extreme volatility.
This time has been no different as the whales are making their moves in response to the market forces influenced by the DeFi tide. Increased activity in the DeFi market has fueled demand for ETH since June causing prices to surge. However, the digital asset’s demand has fallen lately following the collapse of multiple DeFi projects including the infamous Sushi exchange. This brought a lot of panic in the market with users cashing out of their ETH holdings causing its price to plunge further. However, for seasoned investors and crypto whales, this presented an opportunity to buy the dip in anticipation of the price rising further once calm is restored in the market. This strategy seems to be working with Ether’s price slowly recovering from the recent dip. At the time of writing the asset is trading at $340 after growing by 3.2% over the past 24 hours.
Image courtesy of Pixabay
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