BTC and ETH Transactions Dips as Whale Activity Declines in the Market

• A great decline in whale transactions for BTC and ETH observed, with volumes nearly halving since March 2024.
• Despite reduced transaction activity, whales continue accumulating assets, indicating confidence in long-term crypto prospects.
• ETH outpaces BTC in recent price gains but exhibits greater volatility, reflecting shifting market dynamics.

In a recent post by Santiment, the cryptocurrency market has recorded a decline in investor activity across major assets like BTC and ETH. Whale transactions, defined as those surpassing $100,000, have decreased, bringing interest in the behaviour of large holders and the possible effects on the crypto space.

Sharp Drop in Whale Transactions

According to data from Santiment, both BTC and ETH  transactions have declined from their high levels earlier in 2024. In the week of March 13 to 19, Bitcoin recorded a considerable 115.1K whale transactions, whereas by August 21 to 27, this number had dropped to 60.2K, nearly half of the earlier figure.  

Similarly, Ethereum recorded a sharp decline, with whale transactions falling from 115.1K in mid-March to just 31.8K by late August. This trend has raised questions about the current behavior of top crypto holders and the overall market dynamics.

Understanding Whale Behavior

Historically, whale activity has often surged during periods of high market volatility rather than in more stable periods. The current reduction in transaction volume might suggest a period of relative market calm, where major players are less active on exchanges but are still maintaining significant positions.

Despite the reduction in large transactions, data from Santiment indicates that whales are still accumulating assets. Despite decreased transaction activity, this steady accumulation has caused different analysts to argue that the large holders are positioning themselves strategically, possibly in anticipation of future market movements. 

Bitcoin and Ethereum Price Movements

Source: CoinMarketCap

According to CoinMarketCap’s comparative price movements of Bitcoin  BTC and ETH,  Ethereum is currently outpacing  Bitcoin, achieving a peak gain of close to 4% with a trading price of $2517.21. However, as the period progresses, both cryptocurrencies exhibit a downward trajectory. 

Despite this decline, Ethereum has consistently maintained a higher percentage gain than Bitcoin , which is trading at 58,947.54. In contrast, Bitcoin’s price remains relatively stable, hovering between 1-2%, while Ethereum displays greater volatility throughout the period at the time of writing.