Most altcoins traded in the green during early Friday following the recent selling frenzy. However, the wavering nature of the cryptocurrency market justified reactions from retail traders and whales.
A state of panic gripped investors after yesterday’s correction. At one point, a total of $250 billion was eliminated from the total market value and $450 million worth of cryptocurrencies were liquidated. While some opted to ‘buy the dip’, others took a more cautious tone. Amid the confusion, whale activity has also increased significantly. Data from Santiment showed that whales picked clear winners and losers during yesterday’s market decline.
Whales pick clear winners and losers
🐳 # cryptocurrency #whales have behaved VERY different since #war it broke. Isolated is the last day of the main high-level whale activity to observe the 1-day percentage change within the 90-day range of each whale reserve asset. That’s about 5x more activity than a typical day. pic.twitter.com/L9H35XMIoO
— Santiment (@santimentfeed) February 25, 2022
The graph showed how much the whales bought or sold yesterday compared to the 90-day average of their holdings.
Game tokens and DeFi caught the whales’ most attention and were among the most accumulated coins. Enjin Coin topped the list, followed by Axie Infinity, Compound, Uniswap, Ethereum and Fantom.
The light accumulation zone featured Gala and Decentraland metaverse tokens, along with DeFi tokens MATIC and Chainlink. Incidentally, Shiba Inu was the only meme coin that peaked in whale hoarding interest.
On the other hand, prominent names like Bitcoin, Chilliz, Basic Attention Token, Ripple and The Sandbox made the category slightly evicted.
While whale movements are not always immediately reflected in price, they do have major medium and long-term implications. In most cases, whales taking a bearish or bullish tone also affect the sentiment of retail traders. It would be interesting to see how the prices of the aforementioned currencies shape up when volatility stabilizes and the next rally is initiated.