Whales push AAVE, COMP, CRV market caps higher, kick off week with extreme activity

• Whales start off the week with a spike in activity in altcoins AAVE, COMP, CRV, IMX and YGG. 
• AAVE and CRV witnessed an increase in supply on exchanges alongside massive whale transfers, signaling downside volatility.
• Whale activity is likely bullish for COMP, as there is an increase in whale holdings and decreasing supply on exchanges.

Whale activity, or moves made by large wallet investors, typically influence token prices and market capitalization. A rise in whale activity is associated with increased volatility. Large volume transfers valued at $1 million or higher are indicative of whales making moves in an asset.

AAVE and CRV whale transfers signal downside volatility

Aave (AAVE) and Curve Finance’s native token (CRV) witnessed whale transfers worth more than $1 million on Tuesday. Based on data from crypto intelligence tracker Santiment, the supply on exchanges for these two tokens has climbed consistently over the past week and the supply of the assets held by large wallet investors as a % of total supply has declined. 

AAVE and CRV supply held by top addresses vs supply on exchanges vs price

The above two on-chain metrics help determine whether whales are accumulating or shedding their holdings by sending them to exchange wallets. In the case of AAVE and CRV, it is likely the latter. Whale transfers greater than $1 million are associated with volatility in the two altcoins, however, a closer look reveals a higher likelihood of downside volatility. 

AAVE and CRV whale transaction count (>$1 million), noted on August 29

COMP price likely to recover with rising whale activity

In the case of Compound (COMP), whale transfers greater than $1 million are likely bullish for the asset and capable of catalyzing a price recovery. Data from Santiment reveals that whale transfers have coincided with peaks in the asset’s price in the past. 

COMP whale transaction count (>$1 million)

COMP supply on exchanges and whale token holdings are inversely proportional at the time of writing. A rising volume of whale holdings alongside a declining supply on exchanges is a bullish sign for the asset’s price. 

Supply held by top addresses vs supply on exchanges vs COMP price

On-chain analysts at Santiment urge traders to pay attention to altcoins with greater than $10 million in transfers like Immutable (IMX) and Yield Guild Games (YGG), for price volatility this week.

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