Whales Across These Five Chains Are Heavy On Stablecoins, Should You Be Too?

All across crypto, the majority of crypto whales have taken more conservative positions with stablecoins than usual since the bear markets began. This led to larger investments in dollar-pegged cryptos, which are very volatile. Investors who want to avoid volatile tokens, but keep their money in crypto markets have found a safer haven with these digital assets. 

Crypto Whales Make Moves To Stablecoins

The stablecoin holdings for top Ethereum whales have increased in recent years. However, this trend does not seem to be limited to Ethereum whales. The data shows that whale holdings on 5 different blockchains tend to be more stablecoin-oriented.

These five blockchains are: Ethereum, Fantom BNB Chain and Avalanche. This report also looks at the holdings and transactions of top 1,000 whales. These are the holdings for the biggest whales in all these chains. However, stablecoins like USDT or USDC have become increasingly important.

USDC and USDT account for 842 million respectively (26.9% and $710million (22.7%), respectively. BNB Chain whales were even more influenced by USDT and BUSD, which together made up 46.1% ($365 million) respectively.

USDT dominance chart from TradingView.com (stablecoins)

 Source: Market Cap USDT Dominance on TradingView.com| Source: Market Cap USDT Dominance on TradingView.com

The Fantom whales (FTM), were much more interested in USDC. They had 30.75% ($12million) of the stablecoin’s holdings and 4.67% ($1.8million in fUSDT). The USDT holdings of Avalanche whales are 74.2% (or $265 million), and USDT holds 5.68% (or 20.3 million). With only 6.9% ($19.1million) in USDC, polygon whales have the lowest allocation to stablecoins.

Is it time to run for safety?

Investor sentiment can be influenced by whale holdings and the investment trends of large holders. This is because this shows how these big investors think about crypto markets. The recent shift to stablecoin holds shows their belief that market prices will drop in the not too distant future.

It isn’t outlandish, as indicators indicate that the cryptocurrency market is still far from its bottom. The prices of digital assets like bitcoin and Ethereum have fallen more than 80% in bear markets before, which puts the bitcoin market bottom at $13,000.

This, along with the fact that bitcoin’s price follows the market, makes it a great time to look for safe haven in digital assets. This allows investors to preserve their investments while waiting for market conditions that favor reinvestment.

Featured Image from Schroders. Chart by TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Get more Crypto News at CFX Magazine