Investors who hold a lot of a certain cryptocurrency are known as cryptocurrency whales. These investors frequently influence bitcoin prices significantly because their purchasing and selling activity might shift the market.
Whales have been actively purchasing four particular cryptocurrencies in recent months:
BTC, or Bitcoin
The most widely used cryptocurrency in the world and the one with the greatest market capitalization is bitcoin. As a result of their latest purchases, whales now account for 33% of the Bitcoin supply, up from 28% in recent months.
Whales are purchasing Bitcoin for a number of reasons. One explanation is that they think Bitcoin’s price will increase going forward. They are looking for safety from inflation, which is another factor. Because Bitcoin is a decentralized currency, neither governments nor central banks can manipulate it.
Bitcoin (BTC)
The largest platform for smart contracts is Ethereum, the second-most popular cryptocurrency in the world. In recent months, whales have been building up their Ethereum holdings, and their proportion of the overall Ethereum supply has gone up from 31% to 37%.
Whales are purchasing Ethereum for a number of reasons. One explanation is that they think Ethereum’s price will increase going forward. They are investing in Ethereum’s smart contract platform, which is another justification. A cutting-edge technology with the potential to change the economy is smart contracts.
Solana (SOL)
Layer 1 cryptocurrency Solana emphasizes scalability and speed. In recent months, whales have been stockpiling Solana, and their proportion of the total supply has gone risen from 28% to 34%.
Whales are purchasing Solana for a number of reasons. One explanation is that they think Solana is a better layer 1 platform than competing ones like Ethereum. Another justification is that they are funding the Solana network, one of the most rapidly expanding cryptocurrency networks in the world.
Terra (LUNA)
Blockchain coin Terra prioritizes price stability. In recent months, whales have been acquiring Terra, increasing their proportion of the total Terra supply from 25% to 31%.
Whales are purchasing Terra for a number of reasons. One justification is that, in their opinion, Terra is a better price-stable cryptocurrency than others, such as Tether. They are making investments in Terra’s ecosystem, which is expanding quickly, which is another factor.
It’s crucial to remember that whales don’t always foresee the future correctly. When investing in cryptocurrencies, it’s possible to lose money because of the wide price fluctuations that can occur. As a result, it’s crucial to only invest in cryptocurrencies with money that you can afford to lose.
But the fact that whales are making a major investment in these four cryptocurrencies shows that they think these assets have a lot of room for growth. These four choices are worth taking into account if you’re thinking about investing in cryptocurrency.