Major cryptocurrency investors, often called “whales,” are making substantial purchases of Ether, suggesting a shift in focus toward alternative cryptocurrencies (altcoins) that analysts believe have considerable growth potential.
According to Arkham, a blockchain data analysis platform, nine significant whale addresses collectively acquired $456 million worth of Ether (ETH) from Bitgo and Galaxy Digital. This information was shared in a recent post on X.
Nicolai Sondergaard, a research analyst at Nansen, a crypto intelligence platform, believes that the increasing demand for Ether, the second-largest cryptocurrency, is a sign of a “natural rotation” in the market towards Ether and other altcoins that offer promising upside.
“We are seeing what appears to be a standard rotation, with investors capitalizing on Bitcoin’s gains and moving into other digital assets to pursue further potential gains,” the analyst explained to Cointelegraph. He added:
“Ether is particularly attractive right now due to its strong market presence and positive momentum driven by Ether treasury companies.”
Sondergaard notes that while these recent Ether whale transactions are “noteworthy,” the overall trend is “simply a dispersion of investment beyond Bitcoin as market participants explore new opportunities.”
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Sondergaard also suggested that the increase in Bitcoin profit-taking could indicate a growing focus on Ether among investors.
Crypto analyst Willy Woo has also observed the increasing movement of capital from Bitcoin (BTC) into Ether.
“Ether inflows, currently at $0.9 billion per day, are approaching Bitcoin’s inflows,” the analyst shared in a post on X. He further stated that this recent surge in inflows “began when BitMine, Tom Lee’s Ether treasury company, initiated their Ether accumulation.”
These observations follow a report by Cointelegraph about a Bitcoin whale, holding over $11 billion, who sold $2.59 billion worth of Bitcoin and reinvested $2.2 billion into Ether and $577 million in an Ether perpetual long position on Hyperliquid, a decentralized exchange.
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Top Cryptocurrency Traders Shifting to Altcoins: Nansen Data
Data from Nansen’s blockchain intelligence platform indicates that leading cryptocurrency traders, known for their high returns and tracked as “smart money” traders, are already investing in altcoins, fueling expectations of an “altcoin season” in 2025.
Nansen data reveals that these smart money traders have acquired significant amounts of large-cap tokens, including $1.2 million worth of Chainlink (LINK), $967,000 worth of Ethena (ENA), and $614,000 worth of Lido DAO (LDO).
The increased interest in LINK may be related to Bitwise Asset Management’s application to launch a LINK-based exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission, as reported by Cointelegraph on Tuesday.
However, these altcoin purchases are small compared to the $28 million in Ether acquired by a whale who had been inactive since 2021, also reported by Cointelegraph on Tuesday.
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