This metric track on-chain transactions where more than $100,000 was transferred. Institutional investors and whales often execute these transactions, and their trades can often move the price of an asset.
According to data from IntoTheBlock, the count of large MKR transactions completed daily has dropped by 81% since 1 August. As of 8 August, only 14 large transactions were completed. Meanwhile, at the beginning of the month, 75 of these transactions were executed.Trading at $1,203 at press time, MKR’s value rallied by 29% in the last month, data from
showed. The price of the altcoin has fallen by 10% in the past seven days, as whales have reduced their MKR transactions.The corresponding drop in MKR’s value due to a decline in whale activity was not surprising. The activity of this cohort of investors often informs the direction of an asset’s price. When they reduce their trading activity, retail traders often view it as a sign of a looming negative price correction and react accordingly.
Also, whales provide liquidity to the market by buying and selling large amounts of assets. When they reduce their trading activity, it often leads to decreased liquidity, which can make it more difficult to buy and sell assets, putting downward pressure on the prices of these assets.