Key points:
- Crypto whales are buying Polygon (POL), Ethereum (ETH), and PEPE coins.
- Polygon whale wallets increased by 90%, showing strong interest.
- Whale actions may signal future price increases for these coins.
During the first week of September 2024, the global cryptocurrency market fell by 5%. Many investors remained cautious, choosing not to make any trades. However, large investors, known as “crypto whales,” took advantage of the decline to buy more coins. They focused on Polygon (POL), Ethereum (ETH), and the meme coin PEPE. This whale activity suggests that they see value in these coins, even if the market slows down.
Polygon (POL) whales are buying more tokens
On September 4, Polygon completed the transfer of its token from MATIC to POL. Right after, the number of whales buying POL increased rapidly. These whales are wallets that hold between 100,000 and 1,000,000 POL. The number of these wallets has increased by over 90%, and they now control 5% of the total POL supply, spread across 33 wallets.
Even though some expected the token migration to lead to selling, these whales continued to buy. The price of POL remained at $0.38, but the increasing interest from whales shows that they believe the price could rise in the future.
Ethereum (ETH) whales increase their holdings
Ethereum is stuck at a price of around $2,560, but whales are buying more. Large ETH holders, who control more than 0.1% of the total Ethereum supply, have increased their holdings by 38% over the past week. This means they have bought more Ethereum than they have sold.
When whales buy more, smaller investors often follow suit, which can push prices higher. If this trend continues, Ethereum could break its resistance level and rise towards a price of $2,868.
PEPE draws more attention to whales
The PEPE cryptocurrency, which runs on Ethereum, is also attracting increasing interest from whales. Last week, the number of wallets holding between 1 and 10 million PEPE reached a record high of 69,000. This is an increase of 1.2%, showing that large investors are adding more PEPE to their portfolios.
Whales appear to be buying PEPE because it is currently undervalued. The coin’s market value to realized value (MVRV) ratio is -5.67%. When this ratio is below zero, it means that the current price of the coin is lower than the average price paid by all investors. This gives investors a chance to buy at a discount. Whales are taking advantage of this decline.
Despite a 5% market decline, crypto whales have faith in Polygon, Ethereum, and PEPE. Their continued buying suggests that they expect the prices of these coins to rise, even if others stay on the sidelines. This whale activity could be a signal of future price growth for these popular altcoins.
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