The rise in crypto whale activity on an altcoin built on Ethereum (ETH) suggests a major turnaround, according to blockchain analytics firm Santiment.
Santiment says Maker (MKR), a well-established decentralized finance (DeFi) protocol that uses smart contracts to power stablecoin-based lending, has seen its biggest whale transaction in more than three months.
“Maker made its biggest whale movements in over three months a couple of hours ago. 24,331 MKR ($17.4 million) was moved to a whale address and then another move of identical size was made. In recessions, massive moves like this are often correlated with turnarounds.”
At the time of writing, MKR is up over 4% in the last 24 hours, currently trading at $772.91.
Santiment says that there is another bullish signal blinking in the crypto markets. According to the firm, dormant TrueUSD (TUSD) coins are making a sudden move as supply of the stablecoin on crypto exchanges has reached its highest level in almost two years. Dormant coins are crypto assets that have been dormant for a long time.
Santiment says that such a sudden move in stablecoins usually bodes well for crypto markets.
“TrueUSD has seen waves of previously dormant coins move onto exchanges, pushing its exchange supply to 73% for the first time since June 22, 2021. Typically, stablecoins moving onto exchanges involve a higher purchasing power and a good sign for cryptocurrencies”.
Santiment also reports that Bitcoin (BTC) and Ethereum traders are closing out their positions at losses in recent days, a trend the firm says generally precedes a market bottom.
“Bitcoin and Ethereum are seeing more traders selling at a loss than a profit this week, the first week of its kind so far in 2023. Historically, once the crowd exits their positions more frequently at losses, the more likely they will be. form funds. .”
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