Mi. Feb 21st, 2024

• Whales have shifted their focus to small cap altcoins, which could lead to a low-cap altcoin rally soon.
• Santiment recorded unusual on-chain data of heavy transactions with other altcoins like Rocket Pool and Phala Network.
• The whales’ interest in lesser-known altcoins is growing, as they are now leading in gas fees over Ethereum.

Whales Shifting Focus to Small-Cap Altcoins

The crypto markets are plunging! Bitcoin price is sliding and may soon drop below $28,000 while Ethereum price is sticking above $1900. Whales have sensed the incoming trend and hence have largely shifted their focus onto the other altcoins. A popular on-chain analytical platform Santiment has recorded some unusual on-chain data that suggests heavy transactions have been carried out with the other altcoins. After the previous upswing, whales have shifted their focus to tokens like Rocket Pool, which has a market capitalization of nearly $900 million. Transactions worth more than $100K occurred as the prices were trading at their local high of $61.89 and more than 308.2 million PHA were transferred worth nearly $53 million which is said to be the 3rd largest ever since it began publicly trading in 2020.

Increasing Interest in Lesser Known Altcoins

Whales’ interest in lesser known altcoins is growing rapidly as these coins are leaders in gas fees compared to Ethereum or Wrapped-ETH or USDT. Tokens like TROLL, APED, and BOBO were leading in Gas fees according to Santiment’s analysis. Therefore, by these fractals there is a clear shift of focus from large-cap tokens towards mid & small cap ones by whales.

Speculations for Low Cap Altcoin Rally

Heavy transactions with small cap altcoins leads us to speculate that there might be a low-cap altcoin rally very soon due to whale accumulation activity attracting traders away from top cryptos into smaller ones while markets continue to bleed red due to bearish sentiment across all assets including cryptos currently prevailing over cryptocurrency market right now..

Should Large Caps Coins Worry?
With whales focusing on smaller projects investors are getting attracted towards them but still it remains unclear whether this shift will affect large caps coins negatively or not as some analysts claim this will increase competition among them while others argue that large caps coins should not worry about such phenomena because they already had proven themselves significantly during past years when small caps coins pumped hard before eventually crashing leaving investors disappointed so caution should be taken by investors before entering any trade whether it be long or short position for any coin particularly since current situation of market also remains uncertain due increasing volatility across all asset classes because of pandemic induced recessionary environment globally .

Conclusion

The crypto markets are experiencing huge fluctuations due to extreme market conditions and behavior of whales play an important role here by shifting their focus from large caps coins towards smaller projects causing speculations among traders regarding upcoming low cap pump led by whale accumulation activity however results remain uncertain at this point so caution should always be taken before entering any trade whether it be long or short position keeping current volatile nature of global markets also into consideration .

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