The ocean is a vast space filled with uncharted waters and the most diverse array of sea creatures that form food chains and interact at various levels. The whale is the top-dog on this spectrum due to its mammoth size, ability to reach the deepest depths and farthest reaches, and influence over the other smaller creatures within its sphere. Today, we look at a similar playmaker in the cryptosphere and how to stay on top of its market-impacting activities.
Who is a Crypto Whale?
Interchangeable with “cryptocurrency whale” or “whale.”
A crypto whale is an address that is owned by individuals, exchanges, institutions, or governments and holds a significant portion of a cryptocurrency's total supply, enough to influence or impact the market through its activities.
A whale can influence an asset's market price. They are recognized for moving big volumes of assets at a time because they possess such a large portion of the total supply. Their decision to sell the asset at any time can cause a drop in its value, as well as a lack of confidence among smaller investors, who then sell as well, resulting in a sustained dip in the asset's market price.
Being a whale varies by cryptocurrency and is determined by total supply, wallet holders, and the value of a single unit of the asset. It is the proportion of an asset held by a person or entity to the total number of units available and the number of addresses where the asset is held.
Someone who owns 100 Bitcoins worth $6,900,000 (assuming 1 BTC= ATH of $69,000) is not considered a Bitcoin whale, whereas someone who owns its equivalent in Shiba Inu, 86,250,000,000 SHIB (assuming 1 SHIB= ATH of $0.00008) is. Because Bitcoin has a significantly lower total supply than Shiba Inu and a higher per-unit value, only wallets with 1000 BTC or more are considered whales.
What is Whale Watching in Crypto?
Whale watching is the monitoring of the wallet activities of addresses that own a large portion of the total supply of cryptocurrencies. It usually entails knowing their addresses, blocks, asset holdings, percentage of available supply, initial entry, and total asset buying and selling time and volume.
On top of the Bitcoin whale list are 94 of the total 40 million addresses which each hold 10,000 BTC or more and account for a staggering 15.34 percent of the total available supply, while Dogecoin has 132 of the total 4 million addresses that account for a whopping 70.84 percent of the total supply. The list typically includes the cold wallets and other subsidiary wallets of crypto exchanges such as Binance, BitFinex, Kraken, Robinhood, and Huobo at the top, and other larger players who may have one or more whale-sized wallets.
As a result, whale watching is important because fewer entities control bigger volumes of assets and have the power to move enormous sums of money across wallets and networks, which in turn causes market trends and volatility.
Best Cryptocurrency Tracker Apps
Tracking a whale can provide an opportunity for smaller investors to gain confidence in holding an asset, replicate their investment options, and profit together with the whale because there are no clear indicators of who whales are in real life unless they declare themselves. Furthermore, it aids smaller asset holders in mitigating losses and avoiding whale dumping if they choose to sell all of their assets, causing the market to dip.
Here are some of the best ways to track whales;
Whale Alert is a service that provides daily live trading and analysis of millions of blockchain transactions. This service requires a significant amount of data collection. They are the most advanced tracking platform that is currently accessible.
Whale Alert works by monitoring the activity of the top cryptocurrency wallets and publishing information and transactions in real-time on both their website and their Twitter account. The platform contributes to the simplification, accessibility, and transparency of blockchain data by utilizing its Application Programming Interface (API).
Bitinfochart is a data-driven platform that collects and displays real-time statistical crypto data for users to compare over 30 digital assets. Total coins in circulation, price, market cap, 24-hour transactions, top 100 richest, active addresses in the last 24 hours, blockchain size, Reddit subs, tweets per day, and other information are made public.
The "Top 100 Richest" section is especially useful for whale watching. It displays data in a tabulated, user-friendly interface, allowing you to see how total coins are distributed in number and percentages, how top addresses rank in wallet size, blocks, balances, percentage of total coin by each whale, first entry, last entry, total in, total out, and a graph displaying the total life cycle of wallets.
WatcherGuru is a cryptocurrency news network that provides real-time coverage of crypto and NFTs, as well as automated cryptocurrency whale tracking. This option is available on their website in the "WHALE TRACKING" section, which includes 45 assets for whale tracking, such as data on rank, addresses, quantity changes, and previous changes.
The whale tracker on WatcherGuru is notable for tracking less popular assets such as FEGToken, Bonfire, ElonGate, SafeMoon, and Shiba Inu, among others.
ClankApp's explorer allows you to track crypto whales and their activities across 20 blockchains such as BTC, ETH, TRX, LTC, USDT, and others in real-time. They accumulate massive amounts of data from various players in the crypto world every day and provide updates on whale activity on their website, detailing the value, sender, recipient, and date of each transaction.
To keep viewers interested, the app also included ideas such as "whale of the day" and "whales of the week" based on recent activities.
Whalemap is a blockchain analytical platform that provides data from blockchains such as Ethereum, Solana, and Polygon that customers can track. Whale watching, which provides information on large wallet inflows, whale outflows, and large transactions, is one of their blockchain data tracking services.
Read Also: How to Survive the Crypto Bear Market: Tips for Beginners
Whale watching can be done for recreational, educational, or trading reasons. As someone who has previously done copy trading, I would advise you not to risk all of your funds in the investment directions of whales because they have more capital to leverage and risk, and the market is still very volatile. Make sure to conduct your own research and take advantage of the data that whale watching provides. WAGMI!
I/we have no positions in any asset mentioned, and no plans to initiate any positions for the next 7 days