A recent Santiment analysis indicates that whale activity across major cryptocurrencies especially Bitcoin and Ethereum has obviously decreased.
On-chain data showing a clear drop in the volume of significant transactions valued more than $100,000 between March and August 2024 raises questions about the path the crypto market may take. According to Santiment, Bitcoin whale transactions declined noticeably over this timeframe.
In the week of March 13–19. By the week of August 21–27, this count had dropped almost to 60,200 transactions. Ethereum’s decline was far more noticeable; its whale transactions fell from 115,101 in March to just 31,800 by late August.
Ethereum Whale Activity Declines
This decline in whale activity initially seems to be a pessimistic sign, implying that major investors are either retreating or selling their holdings. Still, the consequences of this tendency might be more complicated. A decline in major transactions does not always mean whales are selling their holdings or the market is about to collapse.
Historically, whale activity often increases during highly volatile times for example, during a market climb or a sudden drop. The current decline in transactions could point to a phase of consolidation in which whales prefer to hang their positions instead of actively trading.
Given that large investors wait for better market conditions before making their next moves, this behavior could indicate a purposeful delay. Santiment also observed that whale accounts show a consistent flow of accumulation, even if there is a general decrease in transaction count.
This suggests that even if the number of major transactions has dropped, some whales still secretly build their habitats. August came off bad for most cryptocurrencies; Ethereum concluded the month down by 22.6%.
As September unfolds, expectations remain negative, in line with prior trends indicating that this month is challenging for all asset classes as well as cryptocurrencies.
