On-chain data reveals Floki has experienced one of the largest spikes in whale activity among alternative cryptocurrencies, potentially signaling a bullish outlook for the memecoin.
Blockchain analytics firm data shows Floki recorded a 450% increase in whale transaction count over a 24-hour period. These transactions, valued at more than $100,000 each, typically indicate movement by large cryptocurrency investors known as "whales."
"When the value of the Whale Transaction Count rises, it means the whales are increasing the number of moves that they are making every day," the analytics firm noted on social media platform X. This trend often suggests growing trading interest among substantial holders.
The Arbitrum version of stablecoin Dai topped the list with a staggering 2,000% increase in whale transactions. Polygon (MATIC) followed with 533% growth, while Floki on the Ethereum blockchain secured third place with its 450% surge.
Recent market volatility has triggered widespread cryptocurrency selloffs, explaining the heightened whale activity across multiple tokens. Analysts suggest this movement represents both selling pressure and strategic buying opportunities.
For volatile assets like Floki and Polygon, increased whale transactions may indicate accumulation strategies. The stablecoin Dai's activity surge potentially signals investor preparation to purchase other cryptocurrencies during market dips.
"Some of this activity would naturally correlate to the selloff itself, but a part of it could be due to the large traders jumping on this dip-buying opportunity," according to the analytics report. The greater the increase in whale transaction count, the more intense the potential accumulation.
At press time, Floki was trading at approximately $0.000082, down more than 16% over the past seven days. Market observers remain cautious about whether the substantial growth in whale transactions will translate to price recovery.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.