Conflicting signals from whales, traders, and exchanges leave investors weighing whether recent momentum marks strength or another pause.
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The crypto market is pulling in opposite directions. While whales keep stacking Bitcoin and Ethereum and billions in stablecoins pour into Binance, on-chain activity shows signs of cooling, raising questions about the strength of the rebound.
Whales Continue to Stack
On-chain analytics firm Santiment reported that large holders of Bitcoin (BTC) and Ethereum (ETH) expanded their positions in August.
The number of wallets holding at least 1,000 BTC rose by 13, reaching 2,087, while Ethereum wallets with more than 10,000 ETH grew by 48 to 1,275. Rising whale numbers are often viewed as a sign of confidence among long-term investors.
Network Activity Slows
But despite the accumulation, a slowdown in network activity is evolving. Blockchain intelligence platform Glassnode has flagged that the average amount of cryptocurrency being moved on the network each month has dropped from $26.7 billion to $23.2 billion, a decline of approximately 13%, aligning with recent price weakness.
Analysts note that if this activity falls below the yearly average of $21.6 billion, it would suggest fewer traders are speculating and overall demand on the blockchain is shrinking.
Network Activity Slowing
The monthly average of change-adjusted transfer volume has declined from $26.7B to $23.2B (~13%), tracking the pullback in price. A break below the yearly average of $21.6B would confirm weakening speculative activity and signal a broader contraction in… pic.twitter.com/gnyTokjzmA
— glassnode (@glassnode) August 26, 2025
Exchanges See Flows
Meanwhile, exchange flows tell a different story. Data from CryptoQuant shows that Binance saw over $1.65 billion in stablecoin deposits in recent days, marking the second time this month that inflows have surpassed the $1.5 billion threshold.
“Large inflows of stablecoins to spot exchanges like Binance often reflect investor readiness to deploy liquidity into crypto markets,” noted CryptoQuant’s analyst Amr Taha.
Binance Sees $1.65B Stablecoin Surge as Ethereum Withdrawals Near $1B
“This marks the second time this month that stablecoin deposits have surpassed the $1.5B threshold, underscoring a renewed wave of capital entering the spot market.” – By Amr Taha pic.twitter.com/V2kHlYEHdJ
— CryptoQuant.com (@cryptoquant_com) August 26, 2025
At the same time, Binance recorded massive Ethereum withdrawals. On August 24, more than 90,000 ETH left the exchange, followed by another 118,000 ETH the next day. The combined outflows, valued near $1 billion, indicate that investors may be moving assets into self-custody.
Historically, consistent ETH withdrawals from exchanges have been linked to bullish sentiment, as reduced supply on trading platforms lowers immediate selling pressure.
Why This Matters
Together, the signals highlight a market caught between cautious optimism and weakening transactional demand. While whales and stablecoin flows suggest strategic accumulation, slower network activity tempers the narrative of a full-scale rebound.
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People Also Ask:
What does it mean when the crypto market sends mixed signals?
Mixed signals in the crypto market occur when different indicators point in opposite directions—for example, whale accumulation may suggest confidence, while slowing network activity hints at weakening demand.
Why is whale activity important for the crypto market?
Large holders, often called “whales,” can influence the crypto market because their accumulation or selling decisions affect liquidity, sentiment, and overall price direction.
How do exchange inflows and outflows affect the crypto market?
Stablecoin inflows to exchanges usually signal fresh liquidity ready to enter the market, while crypto withdrawals often mean investors are shifting assets to long-term custody.
What does slowing on-chain activity indicate about the crypto market?
When fewer transactions or lower transfer volumes are observed, it can mean reduced speculative demand, suggesting the crypto market may be entering a consolidation or slowdown phase.
How should traders interpret diverging signals in the crypto market?
Traders should view mixed indicators as a sign of uncertainty. It may be wise to watch whether capital inflows translate into buying pressure or if cooling activity dominates.
This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.
