A smart money investor made $1.71 million in a couple of days. What did he do? Bought 4T $PEPE at a cost of 2.1 $ETH ($4,410). But, meme coin. Eh, well we are not interested. But if you follow smart money or whales you can make some serious money.
Today, I will show you three altcoins that whales are currently accumulating and you could follow their moves.
Our first token DAI might come as a surprise. But on-chain data shows that this stablecoin is a new favorite of crypto whales. So, sentiment statistics reveal an interesting fact. Addresses with 100,000–10,000,000 DAI increased supplies by 6.4% over the previous six weeks.
🐳🦈 Even with #crypto markets rollercoastering in April, top #stablecoins like $DAI are being accumulated by sharks & whales. Since $DAI was exchanged for pumping $BTC & $ETH in mid-March, $100k-$10m DAI addresses have added 6.4% of the supply back since. https://t.co/JfQREYLKpW pic.twitter.com/r6zqXb7zo1
— Santiment (@santimentfeed) April 24, 2023
Addresses with 100,000–1 million DAI control over 13% of the supply. Those with 1–10 million DAI hold over 25% of the supply.
Why the Interest in DAI?
There are a couple of reasons why whales have turned their focus to DAI:
- There was a shift from USDC to DAI. USDC’s market cap fell by about $10 billion after SVB collapsed. Circle had exposure to the collapsed bank. This raised fears among its users. Many switched sides with DAI.
- Uncertainty surrounding the value of the USD. China and a host of other countries are grooming a new economy. This new move affects the value and power of the dollar. So, the likes of USDT and USDC have faced some concerns. DAI holds a mix of different cryptocurrencies. This way, it has fewer risks.
3. DAI’s decentralized nature makes it a popular option amongst the big three. You don’t have to trust how much the team says is out in circulation. You can mint your own.
1/ MakerDAO is a decentralized finance (DeFi) protocol that allows users to generate and borrow a stablecoin called DAI, which is pegged to the value of the US dollar. In this thread, we'll take a look at how the MakerDAO protocol works.#DeFi #MakerDAO #Stablecoin pic.twitter.com/T4ijnvAhvT
— SJH (@SJH_live) April 23, 2023
2) Bitcoin (BTC)
Bitcoin will always capture attention. And things aren’t looking too bad for BTC. Data from Santiment shows that April ended with Bitcoin whales accumulating the asset. Interestingly, these whales questioned their position in mid-April. When BTC fell below the $30,000. However, by the end of April, they had resumed buying BTC.
🐳 #Bitcoin whales have quietly accumulated again since profit taking above $30k on April 11th. Since this date, as prices wavered and dipped down slightly, addresses holding 100 to 10,000 $BTC have collectively added 64,094 coins back to their bags. 💰https://t.co/Lx3msF58Wo pic.twitter.com/zUQC4BaW6F
— Santiment (@santimentfeed) April 29, 2023
Bitcoin whales have amassed a total of 64,000 BTC over the past few weeks. This is despite the uncertainty in the market. The whales’ strong end to April is encouraging. It shows that these significant investors still have a bullish conviction.
Why the Interest in Bitcoin?
As we said in our last video, bitcoin halving is around the corner. And this will push up the price of the asset. Secondly, there’s been a positive outlook on the market. The dollar is facing hard times, and people are turning to crypto. Bitcoin is the most preferred option because it has widespread acceptance. And the potential to be adopted for corporate use.
I think most people underestimate the importance of a completely neutral payment system & currency outside of government control …. for nations themselves
We've seen Gold seized
We've seen gov bonds seized
We've seen SWIFT weaponised
More & more nations will turn to #Bitcoin
— Alistair Milne (@alistairmilne) May 1, 2023
At the time of writing this article, Bitcoin trades at $27,850.
Since March 2023, major dYdX wallet holders have been building up their holdings. Experts predict an uptrend in dydx.
As dYdX garners massive whale attention, what’s brewing for the token? https://t.co/uzeFKDrrcS
— CryptoNewz (@cryptonewz_io) April 30, 2023
There are two major on-chain metrics that support a bullish view of dYdX:
- Exchange reserves.
- Whale wallet holdings.
Large wallet investors holding 100,000–1,000,000 dYdX tokens have been steadily buying the asset. This is since March 2023. So, data from Santiment shows that this group of whales currently owns close to 5.6% of the supply.
Declining exchange reserves often reduce the selling pressure on an asset over time. The supply of dYdX exchanges decreased by more than 10 million. This is between February and April 2023. The decrease in supply reduced the selling pressure on the asset.
Why’s DyDx Surging?
There are a couple of reasons for this growth on Dydx. This project will complete its move from Ethereum to Cosmos at the end of September this year. This movement has sparked new excitement.
Dydx cited the lack of scalability on Ethereum as the reason for the move. The move to Cosmos enables dYdX to offer a token on its own blockchain and governance system.
We’re excited to announce that dYdX V4 will be developed as a standalone Cosmos-based blockchain! 🔗🎉https://t.co/zQzZMIpzWO
— dYdX (@dYdX) June 22, 2022
At the time of writing this article, Dydx trades at $2.23.
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