Crypto insights firm Santiment is revealing that the behaviors of a group of investors may be a negative sign for the market.
According to Santiment, sharks, or entities that hold between 10,000 and 100,000 of a particular crypto asset, are accumulating stablecoins Tether (USDT) and USD Coin (USDC) even as the prices of crypto assets appreciate.
The market intelligence company says this is an indication of the doubts investors have over the sustainability of the most recent crypto market rally.
“Tether and USD Coin shark addresses have been accumulating coins as crypto prices have risen. This accumulation indicates a disbelief in the rally, and a reluctance to buy in, also known as a ‘wall of worry.’”
Santiment says the sharks are reluctant to buy into a bullish thesis for crypto assets following the most recent bounceback.
“What we’re seeing here, is that for the last 2-3 weeks (despite the price growth of Bitcoin, Ethereum and others) they haven’t been too keen on parting ways with their stablecoins, even doing the opposite. This could be interpreted as disbelief in this price rally, reluctance to buy in.”
According to Santiment, the Token Age Consumed metric of Polygon, which is typically used to spot local tops, has hit an all-time high. The metric measures the amount of tokens changing addresses on a particular date multiplied by the time passed since the previous movement.
“MATIC’s Token Age Consumed [metric] has hit an all-time high, indicating older addresses have moved assets swiftly. We can also see Polygon’s mean dollar age has also decreased, validating that older, dormant addresses have just moved a large chunk of coins.”
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