The Curve Finance hack of July 31st caused a widespread crisis in the DeFi industry. According to reports, $22 million was exploited from Curve pools. In the coming days, bulk purchases involving DeFi altcoin projects such as AAVE and COMP are attracting attention.
Altcoin whales make bulk purchases on AAVE, APE, COMP, IMX and LDO
Whale activity, which is considered an uptrend, has been climbing in recent days, according to a recent report by Santiment. This week, several transactions worth $10 million or more emerged. However, given the state of the Bitcoin and DeFi ecosystem, the possibility of a price correction is still on the table.
Santiment analysts spotted a notable spike in whale transactions worth $10 million or more in various altcoins on Thursday. Altcoins are emerging as a new alternative, as investors get bored of waiting on high-volume cryptos like Bitcoin and Ethereum. BTC price had to spend most of the week struggling to hold critical supports.
Whaling activity is typically associated with an increase in prices. However, profits from investors will likely increase the pressure on altcoins. According to Santiment, altcoins that are currently witnessing increased whale purchases and the risk of price correction strengthening are:
- AAVE (AAVE)
- ApeCoin (APE)
- Compound (COMP)
- Immutable (IMX)
- LidoDAO (LDO)
- Measurable Data Token (MDT),
Investors look for opportunities to make profits
Santiment’s major transfer metrics recorded significant whale activity in the above 6 altcoins. Investors looking for volatility are watching these altcoins for opportunities to profit, as some whale movements are the biggest ones seen in 2023.
The acquisitions come amid the $22 million Curve Finance hack. Meanwhile, large whale activity with names like AAVE and COMP can be considered an indication of an impending decline.
Why whale activity in altcoins is key to Bitcoin’s next move
The reason why these altcoins have rallied in the ongoing correction has to do with the low prices. This, in turn, provides a direct flow of new capital to the market. Demand from market participants will also have an impact on the price of Bitcoin and altcoins in the short term.
Curve Finance founder Michael Egorov’s efforts to increase liquidity for CRV have channeled capital into DeFi tokens and DEX tokens. But whale activity in altcoins introduces new game rules.
Justin Sun and big whales support Michael Egorov
Following the hack, a major loan tied to Michael Egorov, the founder of Curve Finance, is liquidated. Tron founder Justin Sun was one of the names that helped this liquidation, which is closely related to the DeFi market. As quoted by Kriptokoin.com, it sent 5 million CRVs to Egorov on Monday.
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