Recent data indicates a decline in Binance's whale index, suggesting reduced large-scale selling pressure and potential market recovery.
Current State of Whale Ratio
The whale index on Binance, which characterizes the share of large transactions in total inflow, is decreasing. This index is calculated by dividing the top 10 Bitcoin deposits by the total inflow volume on the exchange. A decreasing index suggests that large traders, or whales, contribute less to the overall deposit inflows at the exchange.
Historical Patterns and Their Meaning
Historical data from CryptoQuant analysis shows that declines in this index in previous cycles preceded Bitcoin's recovery from price stagnation. The current downward trend mirrors movements seen during past market transitions. Analysts note that decreased whale-driven inflows could correlate with Bitcoin's potential shift from a consolidation phase to renewed price momentum.
Role of Stablecoins and Active Addresses
There has also been a sharp rise in stablecoin transfer volumes on the platform, indicating price stabilization. Meanwhile, Bitcoin active address activity is rising, which typically aligns with increased transaction volumes. Combined, these trends imply an accumulation phase where investors acquire assets amid subdued market volatility.
Despite recent corrections, the reduced whale activity on Binance may signal stabilizing sell sentiment and potential market recovery.
