- Lookonchain’s data shows that DYDX and GRT recorded significant price drops.
- The price drops were due to massive sell-off by whales across crypto exchanges.
- Analysts use exchange deposit metrics to gauge investors’ sentiments toward specific assets.
Lookonchain’s data shows that DYDX and GRT recorded price drops resulting from significant sell-offs from whales. In separate tweets, the smartmoney on-chain analytical platform revealed that Wintermute Trading repeatedly deposited large amounts of DYDX on exchanges ahead of the sell-off.
Wintermute Trading has deposited 2.6M $DYDX ($5.08M) to exchanges, and there are currently 525,413 $DYDX ($1.02M) left.The price of $DYDX dropped ~8.5% after Wintermute Trading started depositing $DYDX to exchanges.https://t.co/GYHsoYKVow pic.twitter.com/65PJHk9c8B— Lookonchain (@lookonchain) July 4, 2023
The first deposit Lookonchain observed was a transaction involving 653,295 DYDX, equivalent to $1.37 million that Wintermute Trading transferred to centralized exchanges. After making the transfer, the institution had 2.5 million DYDX worth $5.26 million left in its portfolio.
Several hours later, Lookonchain observed that Wintermute Trading carried out another significant transaction involving the transfer of 2.6 million DYDX, equivalent to $5.08 million to centralized exchanges. As of Lookonchain’s tweet time, the price of DYDX had dropped by 8.5% following the timing of Wintermute Trading’s initial deposit.
Lookonchain reported a similar scenario with the GRT token. However, in the case of GRT, the analytics platform observed that multiple whales executed significant transactions that led to a sell-off. Lookonchain tweeted that Whale”0xde32” deposited 6 million GRT, equivalent to $776,000 on the Binance exchange. Following the deposit, the Whale sold 750,000 GRT worth $100,000 on a decentralized exchange (DEX) via another wallet.
Whale"0xde32" deposited 6M $GRT ($776K) to #Binance and sold 750K $GRT ($100K) on #DEX via another wallet in the past 7 hours.And the price of $GRT dropped by nearly 10%.Currently, the whale holds 3.22M $GRT ($416K) in the wallet, and 25.3M $GRT ($3.25M) is staked. pic.twitter.com/hhH1giyyNP— Lookonchain (@lookonchain) July 4, 2023
The impact of the sell-off led to a 10% drop in GRT’s price, and Lookonchain noted that the Whale currently holds 3.22 million GRT, equivalent to $416,000 in the wallet, and 25.3 million GRT worth $3.25 million in a staked account.
Apart from the initial whale, Lookonchain tweeted about two other whales making significant GRT deposits on exchanges. In their cases, they transferred 6.8 million GRT tokens worth $886,000 on the KuCoin exchange.
Market analysts use exchange deposit metrics to gauge investors’ sentiments toward specific assets. Making deposits on exchanges indicates that holders may be willing to sell a given digital asset for fiat or exchange it for other digital assets.
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