Fresh Whale Activity Shows Surge in DeFi Token Accumulation: AUCTION, UNI, and MKR Withdrawals from Binance

A considerable step in the direction of decentralized finance (DeFi) that has been taken is the accumulation of large quantities of DeFi tokens by holders of substantial amounts.

Of late, some noteworthily large purchases of $UNI, $MKR, and $AUCTION tokens have been made, with the bulk of those acquisitions coming from direct withdrawals from Binance. The recent uptick in whale activity across the DeFi space has given some pause for thought about the kind of influence these largely held tokens may have on the future trajectory of the DeFi market and the bare tokens that essentially make it up.

In the last 48 hours, we have seen an upswell in the accumulation of popular DeFi tokens by large, whale wallets. Two particular whales—”0xace” and “0xEc1″—have made some rather large moves, buying up significant amounts of these tokens from primarily Binance. What is interesting about this is not just the size of the purchases but also the potential impact these whales may have on market dynamics.

Whale ‘0xace’ has been very active lately, amassing a total of 374,333 $UNI tokens currently worth around $2.3 million and 1,735 $MKR tokens worth close to $2.06 million, in the last 18 hours alone. This large acquisition seems to have come out of nowhere and raises the question: Why are these whales making such big buys now?

Leaving aside the possibilities of price manipulation or direct purchase for project funding, we could interpret this sudden whale activity in a few different ways. Portfolios of whales are starting to include two widely regarded key tokens of the DeFi ecosystem: $UNI and $MKR.

Whale portfolios that hold $UNI and $MKR are a strong endorsement of these tokens as orphaned assets that enjoy a growing level of interest and a fair degree of stability.

Whale ‘0xEc1’ has been fixed on the $AUCTION token, pulling 500,000 tokens, worth $13.9 million, from Binance in the last three days. Withdrawal is part of a broader trend, with a clutch of whale wallets now owning 26.2% of the total $AUCTION supply. This past week has seen an unprecedented level of concentration and accumulation, with whale wallets not just pulling $AUCTION and its staking rewards off of centralized services but also going to the manual effort of converting some of that crypto into other tokens.

What’s particularly interesting about the acquisition of $AUCTION is that the whales involved now sit on an impressive unrealized profit. Since they amassed a significant chunk of the token’s total supply, the whales now hold $32.9 million in profits that have yet to be realized, with their positions showing an impressive 87% gain. This accumulation leads one to believe that these whales may be positioning themselves for future market moves—either to profit from a price spike or to influence the token’s market value.

Currently, 26.2% of the total $AUCTION supply is now controlled by this group of four whale wallets. That has significantly reduced the token’s available circulating supply. As these wallets withdraw tokens from exchanges like Binance and hold them off the market, the liquidity for $AUCTION becomes tighter, which could lead to increased price volatility. This type of accumulation is often seen before a significant price rally, as whales attempt to control the supply and demand dynamics in their favor.

The fast increase in these whales’ unrealized profits may mean they are getting ready to make a strategic exit. Or they could very well be in accumulation mode. Either way, the way in which these big players participate in the market will influence how the $AUCTION token performs in the future.

Accumulating DeFi tokens, whales give retail investors and market watchers reason to predict a shift in the market.Whale activity often leads to price volatility. This is because large holders can dramatically affect a token’s overall supply and demand. Recent movements in $UNI, $MKR, and $AUCTION—the three tokens we analyze in this report—indicate increasing volatility. This could be a function of the underlying projects themselves. But it’s also likely driven by the actions of large holders. And those large holders? They’re increasingly buying up DeFi.

Additionally, the rising concentration of $AUCTION among a select few whale wallets is prompting concerns over potential market manipulation. Four wallets control a whopping 26.2% of the total token supply—a clear danger sign, given that these whales could light the fuse on a price manipulation scheme. If they trigger the sell order, for instance, we could easily see a sharp price drop in $AUCTION followed by a rebound, all while leaving the little fish swimming in the the wake of that price choppiness, and all while giving the appearance of a legitimate price action.

Conversely, whale “0xace” accumulating $UNI and $MKR tokens is a show of faith in the long-term sustainability of big DeFi projects. Uniswap and MakerDAO are two of the top decentralized finance services. They also happen to be two of the fastest growing. This makes them two of the top targets for anyone looking to make a buck off the DeFi movement.

Whale activity is influencing the market for DeFi tokens such as $AUCTION, $UNI, and $MKR, just as it has for other cryptocurrencies in the past. Since DeFi has become an increasingly prominent part of the crypto landscape, it’s worth considering what the presence (and sometimes the actions) of these big holders means for the future of these tokens in terms of distribution and liquidity.

Right now, the whales are the only ones making waves, and not just of the kind that might attract the attention of a curious sea lion. These big players in the DeFi market are accumulating, withdrawing, and possibly even market-manipulating in a way that is bound to affect the prices of several crypto projects and coins. What we now have is a concentration of amply funded power in the most unsupervised and unregulated part of the crypto world. And if you think that’s a story no one should control, just consider the control these characters can exert over the narratives of the crypto world.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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