How Crypto Whales Impact The Cryptocurrency Ecosystem
Large cryptocurrency holders are called whales because their accounts are much larger than the smaller fish (accounts) in the cryptocurrency ocean. Four bitcoin wallets owned 3.56% of all the bitcoin in circulation in August 2024 according to BitInfoCharts.
Go Back
🕒 9:13 PM
📅 Nov 03, 2025
✍️ By chrison2
°Crypto whales hold large amounts of cryptocurrency that can significantly impact market liquidity and prices.
°Whale activities are closely monitored because their transactions can create price volatility and market disturbances.
°Whales may hold cryptocurrency in dormant accounts, reducing the number of coins available for trading.
°Whales can influence blockchain governance by using their significant holdings to sway voting outcomes.
°Observing whale movements is crucial for investors, but activity does not always indicate market manipulation or selling.
•How Crypto Whales Influence Cryptocurrency Liquidity.
High-profile whale wallets can be problematic for cryptocurrencies because they concentrate wealth without moving coins. Whale accounts reduce a cryptocurrency's liquidity because fewer coins are available for trade.
•Governance Impacts of Crypto Whales in Blockchain.
Some blockchains grant governance voting rights to cryptocurrency holders. If a whale has enough cryptocurrency, they could influence blockchain development, as votes are often weighted by holding size.