Cryptocurrency insights firm Santiment has revealed that the actions of a group of investors could be bad for the market.
According to Santiment, sharks, or entities holding 10,000 to 100,000 of a particular cryptoasset, are accumulating stablecoins Tether (USDT) and USD Coin (USDC) even as the price of the cryptoasset rises.
The market intelligence firm said this suggests investors have doubts about the sustainability of the recent crypto market rally.
“Tether and USD Coin shark addresses have been accumulating coins as cryptocurrency prices have risen. This accumulation indicates skepticism about the rally, and a reluctance to buy, also known as the “Wall of Worry.”
mood Say Sharks are reluctant to buy the bullish argument for crypto assets after the recent rally.
“What we’re seeing here is that in the past 2-3 weeks (despite the price increases for Bitcoin, Ethereum, etc.), they’re not too keen to part ways with their stablecoins, or even the other way around. This can be interpreted as a disbelief in this price increase and a reluctance to buy.”
The crypto analytics firm also looked at addresses for Ethereum (ETH) scaling solution Polygon (MATIC).
According to Santiment, Polygon’s Token Age Consumed metric (often used to spot local tops) has beat a record high. This metric measures the number of tokens that changed addresses on a particular date multiplied by the time elapsed since the last move.
“MATIC’s Token Era Consumption [metric] The all-time high is a sign that old addresses have moved assets quickly. We can also see a drop in the average dollar age of Polygon as well, proving that older dormant addresses have just moved a chunk of coins. “
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