- Despite the relatively turbulent market, crypto whales have continued to invest in certain altcoins this week.
- Analysts suggest this could be a sign of optimism for a significant market recovery soon.
- An interesting trend has emerged regarding the specific altcoins chosen by these whales.
Discover the altcoins favored by crypto whales in August and what this could mean for the broader market.
Significant Whale Activity in Litecoin (LTC)
Leading the list is Litecoin (LTC), developed as a lighter version of Bitcoin (BTC). According to IntoTheBlock, LTC’s Large Holders Net Flow has seen a significant increase over the past week. The Large Holders Net Flow tracks the movements of addresses holding at least 1% of the total circulating supply. The recent uptick indicates that crypto whales have accumulated more LTC than they have distributed. Generally, when whales increase their holdings, it signals a bullish sentiment regarding future price increases. Currently, LTC is trading at $67.75, experiencing a 4.54% daily increase and a 10.22% gain over the past week. If the purchasing momentum continues, LTC could see further gains.
Polygon (MATIC) Sees Increased Buying Interest
It comes as a surprise that Polygon (MATIC), despite its relatively underwhelming performance compared to its peers, has attracted whale interest. On-chain data from Santiment confirms that whale addresses holding between 100,000 and 1 million MATIC, and even those holding between 10 million and 100 million MATIC, have increased their balances. This accumulation appears to be linked to the impending upgrade scheduled for September 4, where MATIC will transition to POL. The expected transition seems to be sparking increased interest in the token. Currently, despite a 5.15% decline this week, MATIC saw a 2.7% increase in the past 24 hours, aligning with market trends.
Avalanche (AVAX) Gains Whale Attention
Avalanche’s native token, AVAX, rounds out the list. Similar to Litecoin, AVAX’s Large Holders Net Flow experienced a substantial 36% increase. This rise points to significant accumulation by crypto whales. At the time of writing, AVAX saw a 2.70% increase in the past 24 hours, although it experienced a 6% decline over the week. This decline is likely due to the scheduled token unlock on August 19, which typically increases the circulating supply and can sometimes exert temporary downward pressure on the price. However, if whales continue to accumulate AVAX post-unlock, the token’s price may stabilize and potentially recover.
Conclusion
The ongoing investments by crypto whales in LTC, MATIC, and AVAX amid a volatile market suggest a cautiously optimistic outlook for these altcoins. As these whales continue to accumulate tokens, the market may witness potential price recoveries in the near future. For investors, keeping an eye on whale activity could provide valuable insights into market trends and future developments.
