Whales are out, is ARK the next TRB?

Five whale addresses have withdrawn more than 40 million ARK, worth more than 60 million US dollars, accounting for 22.5% of the total supply.

In the past three months, although BTC has not yet ushered in the “wild bull market” expected by retail investors, in the process of fluctuating and recovering, small coins have set off a wave of fervor that started 10x. The cryptocurrency market has been in a bear market for almost 2 years, and it hasn't been growing for a long time. TRB, GAS, BLZ... Binance's small market capitalization currency seems to have accurately predicted the benefits of BTC spot ETFs and the BRC20 hotspot that followed, triggering a wave of upward trend ahead of schedule.

TRB also dominates Binance Square due to its nearly 20-fold increase in 2 months, high rates for perpetual contracts, and no “pin” pullbacks during the rise process, and is regarded as “the most classic trading in 2023.”

Coincidentally, ARK, which has tripled since the end of October, also has many characteristics of TRB's rise in the early days. Judging from on-chain data analysis, it is even more obvious, and giant whales frequently appear in it, which inevitably makes people think about subsequent trends.

Stage 1: Binance is infested with whales, big brick-movers appear

According to CMC data, at the end of October 2023, the total number of ARK in UPBIT hot and cold wallets accounted for more than 50% of total ARK circulation, while Binance only accounted for about 20%. However, the Binance price has increased significantly since October 29, and has continued to have a premium compared to UPBIT, which has led to a major shift in ARK stock. In less than half a month, the share of UPBIT wallets fell by more than 30%, while Binance's share rose accordingly, becoming the largest ARK center in the entire network.

In the process, strong buying has emerged from Binance. According to data testing, in just 3 days, Binance ARK spot transactions exceeded 400 million units, which is equivalent to more than 200% of the total circulation, and turnover is extremely active. Several whale accounts have net purchases of over 50 million ARK during this period, which is an absolute force driving the market.

The spread space between UPBIT and Binance also provides an excellent opportunity for large brick movers. According to on-chain data, wallet addresses:

· ammwxqzgylegwsqyy3q6nmvitd36wcntq4

· anapg9mbnmztvhyinrkpwl6zcuzqg1xyt

Frequent large transfers between the two exchanges. Deposits and withdrawals once accounted for more than 40%, eating up most of the profits from exchange arbitrage in this market.

Phase 2: Large account withdrawals, voting surges

Binance saw a large outflow of ARK as whales' first-stage buying activity slowed down. According to ARKSCAN, the following 5 whale addresses alone have withdrawn more than 40 million ARK, worth more than 60 million US dollars, accounting for 22.5% of the total supply. Currently, these addresses are still only inaccessible, and the act of depositing coins is obvious.

· azqydzyd9gaupfy9vetppqkvb4ka2kpz7t

· AQ3fq7zp4qzjtqkhmxqsdvnty5mclgqkey

· AS9udo7qpukV3r3heo46mcweckac63xGQT

· amtjcfennh4fr32sneyueslrd9ghexcjnm

· Ahd3Dpctsfwaovdn3ngvnz5envkebakzvn

At the same time, ARK, which has a DPOS mechanism, has a voting mechanism. Since the rise of its own circumstances, the number of pledged votes across the network has risen rapidly. From November 20 to 25 alone, the number of votes rapidly climbed from less than 40 million to over 61 million, adding more than 20 million ARK votes, an increase of more than 50%, and the turnout rate across the network reached 36%, leading to a further reduction in the actual number of ARK in circulation.

Various indications suggest that this round of ARK's market was driven by whales on Binance, causing most of UPBIT's stock coins to be transferred to Binance. After that, whales withdrew money to cold wallets; ARK's entire network voter turnout has also risen rapidly recently, locking in actual liquidity. The series of operations is reminiscent of Binance's voluminous purchases during the first wave of TRB's rise, large cold wallet deposits, and no pin pullbacks. Combining many factors, ARK is an old project from before 2017, launched in “strong gambling” South Korea, the token is already in full circulation, its cross-chain concept may resonate with L2 hot spots, and Gate & Binance chose to go online some time ago, making it “fit” to explode in this round of Binance's small market capitalization coins.

Currently, ARK is trading sideways around 1.6U after rising 3 times. We will wait and see if we can continue to write the TRB myth.