Ethereum Whales Take the Lead: A Possible Altcoin Rotation on the Horizon
It looks like the tide is turning in the world of cryptocurrencies, with Ethereum (ETH) gaining traction among whales, while Bitcoin (BTC) sees a decline in whale activity. According to recent data from Santiment, the number of BTC wallets has dropped by 1.61% over the past two weeks, whereas ETH wallets with at least 10,000 ETH have grown by a whopping 8%. This significant shift in whale activity has sparked speculation about a possible altcoin rotation, led by Ethereum.
Whale Activity: A Tale of Two Cryptocurrencies
The numbers are telling: in just 48 hours, top ETH owners snapped up over 220,000 ETH, worth around $840 million. This massive buy-up has fueled rumors of a capital rotation from Bitcoin to Ethereum, a phenomenon often seen at the beginning of an altcoin cycle. However, it’s essential to note that this increased interest in ETH doesn’t seem to be coming at the expense of Bitcoin. On-chain data suggests that no significant capital is being shifted from BTC to ETH.
No Capital Drain from Bitcoin
A separate analysis by Cryptoquant’s Carmelo Alemán reveals that the rally in Ethereum is driven by new capital entering the ecosystem, rather than money being pulled out of Bitcoin. In fact, Bitcoin’s realized capitalization recently reached a new all-time high of $1.018 trillion, indicating continued capital inflows and accumulation, with no signs of a drain. This suggests that both assets are benefiting from increasing interest, rather than competing for the same liquidity.
Ethereum Gains Momentum
Over the past few weeks, Ethereum has been outperforming Bitcoin, with a 52% gain in the last 30 days and a 2% increase in the past week. Bitcoin, on the other hand, has risen by 9% per month and 0.6% in the last week. While Bitcoin has experienced greater institutional demand due to capital inflows, Ethereum’s inflows have been growing at a faster pace. The continued influx of funds into Ethereum corporate treasuries and exchange-traded funds is expected to further boost the value of ETH in the coming months.
As the cryptocurrency landscape continues to evolve, it’s clear that Ethereum is gaining momentum. Whether this marks the beginning of an altcoin rotation remains to be seen, but one thing is certain – the whales are taking notice, and ETH is definitely worth keeping an eye on.
