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- Crypto whales are turning to certain altcoins to secure their assets.
- USDT, USD Coin, and Dai are some of the stablecoins that big whales and sharks are running to.
The cryptocurrency market has been dealt multiple blows by the SEC in the past few days. After the regulatory body slammed two of the leading exchanges with a lawsuit, traders and investors reacted by either migrating to a different exchange or withdrawing their cryptocurrency assets entirely.
However, in a recent report from crypto intelligence platform Santiment, a significant number of crypto whales are running to a specific altcoin for shelter.
As it appears, market players are running to specific stablecoins including Tether (USDT) and the USD Coin to safeguard their assets.
Although the market cap of some of the leading stablecoin peaked back in March of 2022, Santiment explains that an increase in market cap could mean that large addresses have collected massive profits and have stopped propping up the market as they did during the previous bull run.
Regarding this point, Santiment is quoted saying the following ;
Large addresses can be a complicated topic when it comes to stablecoins. We like to look at what stablecoin sharks and whales holding between $100,000 and $10,000,000 are doing with their assets at any given time. And for most of the stablecoin sharks and whales, it appears that they’re moving in the right direction..
Stablecoin market caps are declining but big whales are not the cause
Notably, Sharks and whales holding Tether have surged past 40 percent of the supply held again. This is their largest amount since November 2021. Meanwhile, whales and big sharks going assets like USD Coin, have secured more than 37 percent of the supply held, which is the leathery amount since February 2023. On the other hand, big hands holding Dai are slightly below the 40 percent supply held again; the largest amount since December 2020.
Santiment describes these numbers as staggering and further states that they are an indication that lathe holders have yet to cash out of crypto. In fact, these whales hold a significant amount of their assets in the form of stablecoins, while they await the perfect entry point to make a return.
Additionally, this accumulation has been steady. As far as whale transactions are condoned, there are no outliers in sudden major stablecoin moves. However, if it does it will be a sign that the bottom Is in.
Furthermore, the USD Coin seems to have recorded some dominant movement at the close of May. But overall, Santiment claims that it doesn’t look like the explosion of stagnant stablecoins moving the way they did back in mid-March, which later turned out to stir up a bull rally.
Stablecoin market caps may be declining a bit lately. But it doesn’t look like sharks and whales are the ones making them sink. Therefore, we have encouraging signs that show that the key stakeholders with the most power in the markets are still ready to boost crypto whenever the time is optimal for them.
