Recently, there was an increased whale activity in Shiba Inu, Ripple's XRP, Sandbox's SAND and PancakeSwap's CAKE.
Will these cryptocurrencies go bullish or will face a sell-off. Two of them are already amongst our top pick for this week.
In this article we will decode how big investors and smart money is behaving in these four cryptocurrencies.
Santiment recently tweeted about increasing whale activity in four cryptocurrencies, namely, SHIB, XRP, SAND and CAKE.
There was a surge in whale transactions that were considerably higher than past few months. Highest whale activity was witnessed in case of Shiba Inu which saw several $1m+ transactions.
This was followed by XRP which saw an increased number of $100k+ transactions.
CAKE and SAND also witnessed significant transactions with respect to their smaller market caps.
The increased activity can be the result of either fundamental reasons or due to recent price action.
Shiba Inu has been a whales' favorite cryptocurrency. It has a strong community and has recently launched a blockchain, Shibarium. Its blockchain has been designed as a Layer-2 solution for Ethereum and can support all ERC-20 cryptocurrencies.
The launch of Shibarium could be considered as a shift in the project's outlook towards its future as it progresses from meme coin to a utility based cryptocurrency.
Further, Shiba Inu enjoys a huge fan following with 1.3 Million addresses and 1.8 million watchlist bookmarks in CoinMarketCap. Compare this with XRP which has 6 times the market cap as Shiba Inu but has the same number of bookmarks on CoinMarketCap
Ripple has had many successes in the past 2-3 months. After winning the retails sales case against the SEC, it has now formed a strategic partnership with Amazon. The ecommerce giant intends to use the RippleNet for faster transactions on its platform.
RippleNet is a network of banks, financial companies that are integrated with the Ripple ecosystem through blockchain based banking solutions such as the blockchain based xCurrent software that is used to facilitate cross-border payments.
This news has given rise to further bullishness in Ripple and has attracted whales.
In the below chart, the red bars shows whale transactions above $100k and the blue bars show whale transactions above $1M.
We can see that there has been consistent investment in Ripple since the last few weeks. Whales have been buying taking the benefit of price drops to accumulate more. The reason is that XRP is very close to its pre-winning price range of $0.50-$0.55.
Sandbox has attracted a good amount of whales in the last few months considering its small market cap. There has been a select few medium($100k+) and large transactions($1M+) in the past few weeks.
The accumulation could be in response to a price drop in SAND of more than 15% in August. During press time, the crypto traded at $0.36 sliding down from $0.46 on July 24, less than a month ago.
However, SAND remains a fundamentally strong candidate in the Metaverse space with its digital land where big names like Warner Bros, Ubisoft, CoinMarketCap, Binance, Atari, and several other giants have considerable holdings.
The SAND token in used for transactions, staking and even governance, which makes it a hidden gem for whales.
PancakeSwap is an automated market maker where users earn income by providing liquidity. CAKE is the governance token.
Despite being in a bad market, the platform still has more than 1.3 million users in the past 30 days with more than 14 million swaps being done on the platform for the same period.
It also has the third highest TVL after Uniswap and Curve. Some of its recent activities include:
These recent announcements indicate that CAKE is trying to ramp up its operations with technology.
The whale activity could be to accumulate CAKE while the prices are still down. Since the beginning of August, CAKE prices have fallen by more than 8%.
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