Notable Altcoins attract big buyers
The global crypto market collapsed 5% on Monday as investors responded to SEC’s latest lawsuit involving the world’s largest crypto exchange Binance and its CEO, Chanpeng Zhao. However, as the crypto market turbulence continues, whales have strategically centered themselves on a handful of altcoins.
Major institutional investors have started to bet strategically against the negative sentiment surrounding the broader crypto industry. As the recent sector-wide contraction presents an opportunity to buy the dip, here are the leading altcoins that have caught investors’ attention over the past few days.
Crypto Whales Confirm Confidence in XRP
With a 17% price increase before the industry-wide retracement on Monday, Ripple (XRP) broke into the list of top ten best performing altcoins. Crypto whales reaffirming their confidence in XRP was crucial to the ongoing bull rally.
Between May 30 and June 6, XRP whales holding one million to 10 million coins doubled their bullish stance. The chart below shows how they added 100 million coins worth almost $53 million.
Remarkably, the SEC conspicuously excluded coins issued by Ripple from the list of cryptocurrencies designated as securities in its lawsuit against Binance.
Crypto whales seem to have interpreted this as another green light for a possible victory in Ripple’s highly publicized SEC case.
LidoDAO is Profiting from the Ethereum DeFi Staking Boom
ETH staked in smart contracts reached a new all-time high in May 2023. This was due to investors embracing passive income opportunities offered by Ethereum’s new proof of stake status.
However, LidoDAO (LDO), a leading derivatives protocol for liquidity staking, has also benefited from this DeFi staking boom in recent weeks. On-chain data shows that crypto whales have taken bullish positions on their native LDO token.
Over the past two weeks, crypto whales have increased their bets on LDO. The chart below shows that large transactions involving LDO have more than doubled since the end of May.
As of May 27, only 14 whale transactions were recorded on LidoDAO. Meanwhile, at the end of June 6, that number had risen to 73 transactions.
The global crypto market capitalization grew 53% in Q1 2023. But the bull rally has cooled relatively since then. Crypto whales are now turning to the passive income opportunities offered by DeFi staking protocols like LidoDAO.
LDO holders can expect further price increases in June 2023 if this trend continues.
Major investors look to optimism.
Optimism (OP) is another prominent altcoin that has caught the attention of strategic whale investors in recent weeks.
Between May 30 and June 7, crypto whales with a balance of 100,000 to 10 million OP added another 100 million tokens to their holdings.
At the current market price of $1.50, the crypto whales’ new investment is worth around $150 million. Given the buzz surrounding Optimism’s successful Layer 2 network upgrade, OP could start a long-term rally if the whales continue to buy into June 2023.
As regulators crack down on prominent exchanges, institutional investors appear to be shifting capital to Bitcoin and a handful of altcoins.
Strategic investors will keep an eye on these altcoins as they navigate the turbulent market conditions.
disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.