Booming crypto whale activity in one altcoin built on Ethereum (ETH) is hinting at a major trend reversal, according to blockchain analytics firm Santiment.
Santiment says that Maker (MKR), a well-established decentralized finance (DeFi) protocol that uses smart contracts to power stablecoin-based loans, has seen its largest whale transaction in more than three months.
“Maker made its largest whale moves in over three months a couple hours ago. 24,331 MKR ($17.4M) was moved to a whale address, and then another identically sized move was made. On downswings, massive moves like this are often correlated with turnarounds.”
At time of writing, MKR is up over 4% in the last 24 hours, currently trading at $772.91.
Santiment says there’s another bullish sign flashing in the crypto markets. According to the firm, dormant TrueUSD (TUSD) coins are suddenly on the move as the stablecoin’s supply on crypto exchanges has hit its highest level in nearly two years. Dormant coins are crypto assets that have stayed inactive for a long time.
Santiment says such sudden movement in stablecoins usually bodes well for the crypto markets.
“TrueUSD has seen waves of previously dormant coins moving to exchanges, propelling its exchange supply to 73% for the first time since June 22, 2021. Usually, stablecoins moving to exchanges implies increased buying power & a good sign for crypto.”
Santiment also reports that Bitcoin (BTC) and Ethereum traders are closing their positions at a loss over the last few days, a trend that the firm says usually precedes a market bottom.
“Bitcoin and Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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