There has been recent selling pressure that has brought the price of Bitcoin (BTC), the largest cryptocurrency in the world, closer to $19,000. However, a select group of alternative altcoins has been gaining steam thanks to substantial whale accumulation and address activity.
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Big investors have been keeping an eye on Chainlink, an altcoin provided by Oracle service provider, throughout the 2022 bear market. The $6–$8 range where LINK has been trading is a significant accumulation zone. When it comes to blockchain information, Santiment is your go-to service.
During the bear market of 2022:
The addresses known as “sharks” and “whales” on Chainlink (holding 100,000 to 1,000,000 $LINK) were busy stocking up. Collectively, 47.31M LINK have been deposited to these addresses as of March 3rd. A total of $312.7M more will be spent as a result.
In addition, the recent surge in Chainlink’s social dominance indicates a growing number of active traders in the cryptocurrency market. Over the past week, Litecoin has been another altcoin with significant whale activity. According to Santiment’s findings:
Address activity and whale transactions on Litecoin have spiked dramatically this week after remaining relatively low key in 2022. The timing of these spikes coincided with the beginning of a rise in $LTC versus $BTC, which was especially noticeable with transactions valued at $1m+ on the network.
Declining Activity at ETH Addresses
After the recent Merge event, Ethereum (ETH), the second largest cryptocurrency in the world, has been under intense selling pressure. At the time of this article’s publication, one ether can be purchased for $1,238 and the total market capitalization of all ether in circulation is $157 billion. Santiment data reveals that the amount of activity from Ethereum addresses has dropped to its lowest level since June 2022. The report mentioned:
With weak hands continuing to decrease after the #merge, and disinterest at a high as prices have stagnated, the number of active addresses in Ethereum has plummeted to a new 4-month low. For the first time since June 26th, there were fewer than 400,000 unique IP addresses in use on Monday.
However, short positions have opened up significantly over the past week, putting selling pressure on the broader altcoin market as well.
Source: Google Trend