On-Chain Data Shows Increased Wrapped Bitcoin (WBTC) Accumulation Among Whales
According to on-chain analytics firm Santiment, Wrapped Bitcoin (WBTC) has seen more large transactions than ever since March.
Santiment noted in a tweet that WBTC whale transfers above $1 million are spiking to their highest rate since March. WBTC also saw its most significant network growth since July and a jump in new wallets holding 1-1,000 WBTC.
The firm said similar on-chain shifts preceded rallies in March and June this year. The data suggests heightened whale accumulation and interest in the Bitcoin proxy ahead of the potential crypto market upside.
Wrapped Bitcoin (WBTC) has experienced notable transaction activity on several occasions. On July 1, 2023, the transaction volume of WBTC surged to over 7,000, marking the second significant spike in just over two months. On August 2, 2023, two substantial transfers of 2,000 WBTC each impacted the overall supply of WBTC on exchanges.
WBTC plays a crucial role in enabling the use of Bitcoin in smart contracts and enhancing the accessibility of the world’s largest cryptocurrency on decentralized exchanges (DEX).
Bitcoin’s long-term holder supply is expanding.
Meanwhile, analyst Charles Edwards highlighted in another tweet that Bitcoin’s long-term holder supply is expanding comparably to 2016 levels.
Edwards believes this increase in holders will have major consequences in 2024, more akin to the 2017 bull run’s 10x price gains versus 2020’s run. This strengthening holder base reflects a step-change in accumulation.
The on-chain insights indicate heightened conviction in Bitcoin among both whale traders and long-term investors.
Key metrics like exchange reserves, active addresses, and transaction volumes further affirm accumulation is occurring at pivotal support around $20,000. The blockchain data shows holders are positioning for the next bull run.
