These 5 Ethereum coins are accumulated by “whales”

• Ethereum and the best altcoins have experienced strong retracements from their summer highs.
• However, investors remain optimistic as they look to the longer term.
• Santiment reports that whales have invested heavily in Ethereum and some ETH-based altcoins.
• These are REN, Chainlink, Aelf (ELF), Kyber Network (KNC) and 0x (ZRX).

Some Ethereum coins are accumulated by whales

Ethereum and the best altcoins have experienced strong retracements from their summer highs. ETH, for example, fell from $ 490 to its September lows of $ 310, while some smaller altcoins saw even worse corrections.

DeFi coins, in particular, have been hit hard by this market drop. An analyst noted that the average DeFi coin had dropped 65% from its summer highs in early October.

This is because DeFi coins have risen faster than all others, which means they were the first to decline when capital stopped flowing in from new investors. They also lost as fast as previous investors were incentivized to dump their coins as fast as possible.

Even still, Ethereum-based altcoins remain in a bullish state as investors try to look out over the long term and invest from that perspective.

Best blockchain analytics firm Santiment relationships that whales have invested heavily in Ethereum and some ETH-based altcoins. These include REN, Chainlink, Aelf (ELF), Kyber Network (KNC) and 0x (ZRX).

“With most eyes on the market price of # Bitcoin between this range of $ 12.7k and $ 13.3k, the whales of many respective $ ETH #altcoins have added to their non-trading exchanges. $ ETH , $ LINK, $ REN, $ ELF, $ KNC and $ ZRX are among those that recently hit one-year highs. “

Chart of the ETH, LINK, REN, ELF, KNC, and ZRX balances of top ETH-based non-exchange whale addresses have reached one-year highs. Chart from Santiment.

Focus on the macro fundamentals

These investors are likely to be focusing on the long-term outlook of the Ethereum DeFi space versus the short-term reality.

For one, head of DTC Capital Spencer Noon reported recently that important DeFi metrics continue to reach new all-time highs despite falling prices:

“Despite a month in which most tokens shrank by 50% or more, #DeFi it is * still * at ATH with its most important indicators: – TVL: $ 12.41B – Stablecoin ERC20: $ 14B Don’t listen to the degens that have run out. Step 2 of this #DeFi bull market will make this summer look like nothing. The likely turning point for DeFi Bull Phase 2 is election, where there are more outcomes that would be favorable for risk assets. Until then, farmers will be sitting in #BTC b / c it’s low maintenance and basically a stablecoin compared to what they were trading this summer. ”

Despite a month in which most tokens fell by 50% or more, #DeFi is * still * in ATH with its most important indicators:

– TVL: $ 12.41 billion
– Stablecoin ERC20: $ 14 billion

Don’t listen to the patients who are burned. Step 2 of this #DeFi bull market will make this summer look like nothing.

– Spencer Noon (@spencernoon) 22 October 2020

There also remain many bulls on Ethereum DeFi due to the high returns of the space compared to traditional markets. Of course, the returns are naturally higher due to greater risk, but analysts believe these returns will attract a lot of capital into space.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
These 5 Ethereum Coins Are Being Accumulated by "Whales"