Notable Developments in the Cryptocurrency Market
In the first week of September, there was a noticeable decline in cryptocurrency trading activities. The preference of many market participants to stay on the sidelines further emphasized this situation. In this context, a 5% decrease was observed in the global cryptocurrency market capitalization. However, crypto whales are trying to turn this negative situation into an opportunity. Last week, whales particularly filled their bags with three altcoins.
Top Altcoin: Polygon (POL)
As you have been following on Kriptokoin.com, Polygon successfully completed its 1:1 transition from its native token MATIC to POL on September 4th. Following this process, a more than 90% increase was recorded in the number of wallet addresses holding between 100,000 and 1,000,000 POL. This situation also brought a significant increase in whale accumulation of the token. Currently, this group of altcoin holders consists of a total of 33 addresses, and this group controls 5% of the total circulating supply of the altcoin.
POL Supply Distribution: Source: Santiment
Although the migration process is perceived as a “news sell” event, it appears that the number of POL whales continues to increase. These large investors are continuing to accumulate the token without being affected by the market’s silence. However, the value of POL has remained quite stagnant since the migration, showing very few signs of improvement. At the time of writing, the altcoin was trading at $0.3771.
Second Leading Altcoin: Ethereum (ETH)
Ethereum faced significant resistance at the price level of $2560 this week. However, the 38% increase in its net inflows over the past seven days did not prevent whales from accumulating ETH. Whales are defined as addresses holding more than 0.1% of a cryptocurrency’s circulating supply. Net inflows measure the difference between coins purchased and sold over a specific time period.
Net Inflows of Ethereum Major Holders: Source: IntoTheBlock
When whales’ net inflows rise, this results in an increase in altcoin assets. This could lead individual investors to a similar behavior, potentially creating a bullish signal that could cause the asset’s value to rise. According to analysts, the increase in accumulation across the market could enable ETH to make a move to $2868.
Last Place Meme Coin: Pepe (PEPE)
Last week, demand for the Ethereum-based meme coin PEPE significantly increased among crypto whales. Santiment data shows that the number of wallet addresses holding between 1 million and 10 million PEPE reached a record level of 69,000.
PEPE Supply Distribution: Source: Santiment
This situation indicates a 1.2% increase over the past seven days and confirms that whales have been purchasing more PEPE. These addresses began accumulating the altcoin following a buying signal from the Market Value to Realized Value (MVRV) ratio. At the time of writing, the MVRV ratio appeared to be at -5.67%. An MVRV ratio below zero indicates that the value of the asset is low. This suggests that the current price is lower than the average price paid for all circulating tokens and is often seen as a good opportunity for investors aiming to “buy the dip.”
PEPE MVRV Ratio: Source: Santiment
