Crypto analytics firm Santiment says whales are having a significant impact on the performance of three altcoins.
In a new report, Santiment observes that massive amounts of Aave, Kyber Network (KNC) and 0x Protocol (ZRX) were sent to exchanges this week, likely triggering high volatility and large selloffs.
When a crypto whale sends their altcoin troves to an exchange, traders often take notice and worry that the individual may be preparing to sell their holdings on the exchange.
This Wednesday, one Aave holder sent 828,600 tokens worth $305 million to an exchange and although the movement has not yet instigated a large drop in price, Santiment suspects that the transfer could cause Aave to dip further.
Santiment reports that a significant quantity of KNC tokens were moved between exchange addresses this Monday including 13 million KNC tokens worth approximately $26 million.
According to the analytics firm, KNC saw a rise in exchange inflows and an overall increase in on-chain volume, which “predictably” preceded a steep fall in the asset’s price.
Whales are disrupting 0x’s upward climb as well, says Santiment. The firm reports that in the largest USD transaction the asset has witnessed in its 3.5 years on the market, 28 million ZRX worth $44 million were sent to an exchange address.
Santiment highlights that the asset’s price action has been relatively volatile since that transfer took place.
Earlier this week, Santiment published a study in which the firm tracked the price movements of 1,000 assets with at least a $1 million market cap to discover whether or not a spike in exchange inflows for a particular asset is a reliable bearish indicator.
The study found that crypto assets drop an average of 5% following a large uptick in exchange inflows for that cryptocurrency or token.