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Dai Shark & Whale Holdings Grow, Dry Powder For Bitcoin?

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On-chain data shows the Dai sharks and whales have been growing their holdings recently, which could fuel Bitcoin’s rally.

Dai Sharks & Whales Have Bought 6.4% Of The Supply In Last Six Weeks

According to data from the on-chain analytics firm Santiment, the holdings of Dai whales and sharks had plunged to a bottom last month. The relevant indicator here is the “DAI Supply Distribution,” which tells us about the percentage of the total circulating supply of the stablecoin that each market wallet group is holding.

Addresses are divided into these wallet groups based on the number of coins they have in their balances. For example, the 100 to 1,000 coins cohort includes all addresses holding at least 100 and 1,000 tokens of the stablecoin.

If the Supply Distribution metric is applied to this group, then it would measure what percentage of the supply the combined balances of wallets satisfying this condition add up to.

In the context of the current topic, the bands of interest are 100,000 to 1 million coins and 1 million to 10 million coins. Here is a chart that shows the trend in the Supply Distribution for these two groups over the last few months:

The values of the two metrics seem to have been rapidly going up in recent days | Source: Santiment on Twitter

The first of these ranges ($100,000 to $1 million) corresponds to a Dai cohort called the “sharks,” while the latter one ($1 million to $10 million) represents the wallets of the “whales.”

These investors’ wallets have such large amounts that they can play an important role in the market. Naturally, the whales’ holdings are bigger than the sharks’, so they are the more powerful group.

Investors usually use stablecoins like DAI to escape the volatility associated with the other assets in the market. Such investors generall

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Author: Hououin Kyouma

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