Using onchain data, The Data Nerd, an onchain analyst, believes he can predict the trend of cryptocurrency markets by analyzing the borrowing behaviours of whales. He noted that a popular way whales went long was by borrowing stablecoins using Aave and CompoundFinance, and using the amount to purchase tokens on DEXs or deposit on CEXs. This cycle could be used to generate profits. The analyst also visualized the correlation of his findings many times. One exception he spotted was when USDC depegged in March 2023 and did not follow the same pattern. He shared that wallets belonging to the whale used a total of 18 million dollars to borrow stablecoins recently and deposited them in Binance. In conclusion, the onchain data analyst predicted that ETH could be rallying as it dropped from a local high within the past week.
Daniel Jones
- 2023-04-24
Analyzing Whales' Borrowing Behaviours to Predict Crypto Market Trend
The Data Nerd, an onchain analyst, believes he can predict the trend of cryptocurrency markets by studying whales' borrowing behaviours. The analyst visualized the correlation and his prediction is that Ethereum (ETH) could be rallying.
