Crypto insights company Santiment reveals that the behaviors of a group of investors can be a negative sign for the market.
According to Santiment, sharks, or entities that own between 10,000 and 100,000 of a particular crypto-asset, have been steadily accumulating Tether (USDT) and USD Coin (USDC) even as crypto-asset prices rise.
The market intelligence firm says this is an indication of the doubts investors have about the sustainability of the latest crypto market rally.
“Shark addresses Tether and USD Coin have accumulated coins as cryptocurrency prices have risen. This build-up suggests a disbelief in the rally and a reluctance to buy, also known as a “wall of worry”.
Sentiment says sharks are reluctant to buy a bullish thesis for crypto assets after the most recent rally.
“What we see here, is that in the last 2-3 weeks (despite the increase in the price of Bitcoin, Ethereum and others) they have not been very willing to part ways with their stablecoins, even doing the opposite. This could be interpreted as distrust in this price rally, reluctance to buy.”
The crypto analytics company also takes a look at the addresses of the Ethereum (ETH) scaling solution, Polygon (MATIC).
According to Santiment, the Token Age Consumed of Polygon metric, which is commonly used to identify local vertices, has Rap all time high. The metric measures the number of tokens changing addresses on a given date multiplied by the time elapsed since the previous move.
“MATIC’s Token Age has been consumed [metric] has reached an all-time high, indicating that older addresses have moved assets quickly. We can also see that Polygon’s average dollar age has also decreased, confirming that the older, dormant addresses have just moved a large chunk of coins.”
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