Ethereum Whales Could Be Diversifying to $MATIC, $LINK – Here is Why
Ethereum whales have been showing a curious interest in altcoins. This comes even as sentiment towards major coins remains sluggish at best. Lately, the top cryptos have been experiencing a challenging period as BTC and ETH struggle to keep afloat in the market.
Bitcoin had been consolidating at the $42500 mark since last week but has since sharply declined. Ethereum has also fallen below the $3000 mark. At writing, BTC was trading at $33700 while Ethereum was trading at $2240, according to Coingecko.
Whales are Looking Elsewhere for Opportunities
According to statistics, about 1000 largest wallet addresses on the Ethereum network have been loading up on Polygon (MATIC) and Chainlink( LINK). Ethereum and leading stable coins like USDC and USDT have also been following closely in the past few days.
Given the crypto industry’s turn of events lately, the whales are loading up on the stable coins to wait on the sidelines as prices keep dropping with uncertainty gripping the market. In one instance,a whale address bought about 1,409,169 MATIC worth $2,931, 071. Additionally, about $253,192,530 worth of LINK is held by the top 1000 ETH whales.
The whales turning to Ethereum and Altcoins is not a surprise. These assets are selling on the cheap right now. Nonetheless, the top of these Altcoin large holders are MATIC on Polygon with $67000 average purchases and Chainlink’s LINK which has average buys of about $35000. BUSD comes in third with average purchases of $23000
Polygon is a protocol framework made to connect ETH’s blockchain network. It also supports the Multichain etH ecosystem. Chainlink is a decentralized oracle network giving real data to smart contracts on the blockchain
What Happens to Ethereum?
Ethereum had been on a more or less consolidating course in the past few weeks. Recently, the asset has been facing a lot of headwinds. On the short-term weekly and monthly return on investments, negative values have been noted as Ethereum keeps drifting further from its all-time high by 32.9%.
Ethereum’s fall in the most recent days has seen it touch the $2250 mark after topping an all-time high of $4850. MATIC and LINK are moving up accumulating about 12% and 33% respectively, which is an inverse for BTC. BTC has also made a drop of nearly 13 % at the same time.
Ethereum might be moving further down if the bulls are not strong enough to push the prices up. On the other hand, the whales have to be daring enough to buy the dip in order to sustain the prices. However, volatility still remains. There are two questions now in the minds of investors. Will these assets continue the downtrend in value? and is there growth expectation in the near term?
* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.