In a blog post that we published a few weeks back, we explained why it was important to find out how much of a token asset was being held by large holders, also known as whales, before buying the asset. We also explained that you could easily do that by reviewing the Concentration by Large Holders Metric, made available in the Token Summary of The Crypto App’s Pro and Pro+ offering, powered by IntoTheBlock.
This week, we introduce a new metric from the same Token Summary that brings your whale watching capabilities to the next level: introducing the Transactions Greater than $100k metric.
What Is The Transactions Greater than $100K Metric?
To put it simply, the Transactions Greater than $100k metric shows just that: the trend and total volume transferred in transactions of over $100,000 USD (each) over the past 7 days. This metric offers a rare view into asset movement being driven by whales or institutional players since $100,000 is not an amount an average retail investor or trader is likely to have access to, let alone move on-chain.
How Can I Use This Metric?
Since large transactions in USD provides an idea of the total amount transacted by whales and institutional players in a given day, spikes in volume around these types of transactions point to high activity among high net worth individuals or institutional players either buying or selling.
Reviewing this metric alongside other data points can potentially signal, on a macro level, whales and institutional players either buying at the beginning of a bear cycle or selling at the end of the bull cycle.
On an individual token level, the same type of data may even signal “smart money” selling after realizing new information that confirms the bearish prospects for a coin. Conversely, it could also potentially confirm that same class of investors buying an asset after realizing fundamental information that confirms the bullish prospects for a token project.
Either way, it may serve as a leading indicator to what the broader market may end up confirming afterward.
In the vast and sometimes stormy waters that make up crypto, whale watching never gets boring. And there’s no better way to try to get a read on what whales or “smart money” is doing around token projects than by leveraging metrics like Transactions Greater than $100k.
This metric and several more that can uplevel your crypto trading and investing are found in the Token Summary of The Crypto App’s Pro and Pro+ offerings.
Don’t wait to find out where the crypto market may be headed next. Start your 7-day free trial to Pro or Pro+ today.
