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Whales Shifting Focus to Small-Cap Altcoins: Should Large-Cap Coins Be Worried?

Emma 0

• Whales have been dealing with the small cap or lesser known altcoins, which has raised speculations of a low-cap altcoin rally very soon.
• On-chain analytical platform Santiment recorded heavy transactions with other altcoins such as Rocket Pool and Phala Network.
• The whales’ interest in lesser-known altcoins is growing, as tokens like TROLL, APED and BOBO are leading on gas fees compared to Ethereum, Wrapped-ETH and USDT.

Whales Shift Focus to Small-Cap Altcoins

The crypto markets have been plunging recently, with the Bitcoin price sliding below $28,000 and the Ethereum price remaining above $1900. This has caused the whales to shift their focus onto the other altcoins in anticipation of a low-cap altcoin rally. A popular on-chain analytical platform, Santiment, has recorded some unusual on-chain data that suggests heavy transactions have been carried out with these smaller cap coins.

Transactions With Rocket Pool & Phala Network

After the recent upswing in prices, Santiment observed 70 transactions worth more than $100K taking place when Rocket Pool was trading at its local high of $61.89. In addition to this, there were numerous transactions with Phala Network where 308.2 million PHA were transferred worth nearly $53 million – this is said to be their 3rd largest transaction since publicly trading in 2020. These tokens were moved to a new non-exchange address which is speculated to be a huge whale’s wallet.

Gas Fees Higher Than Ethereum

The whales’ interest in lesser-known altcoins continues to grow as these coins are leading when it comes to gas fees compared to Ethereum and other major coins like Wrapped ETH or USDT. According to Santiment analysis tokens like TROLL, APED and BOBO are driving higher gas fees than expected indicating an increased demand for them from investors.

Impact On Large Cap Coins?

The shift of focus from large cap coins towards mid & small cap ones may lead investors away from top cryptos for now but could also create opportunities for those who can capitalize on it quickly enough through smart investing strategies such as buying into ICOs or diversifying their portfolios across different types of assets including cryptocurrencies.

Conclusion

Whales have started shifting their focus onto smaller cap alts which could indicate an upcoming low cap altcoin rally soon while leaving large caps behind momentarily at least until they find another opportunity or trend that they can capitalize on quickly enough through smart investing strategies and portfolio diversification across different types of assets including cryptocurrencies

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