Crypto Whale Definition:
A crypto whale is a term commonly used in the cryptocurrency community to describe an individual, organization, or institution that holds a substantial quantity of a specific digital currency. While there isn’t a precise threshold, a Bitcoin whale, for example, is often recognized as someone holding at least 1,000 BTC.
These whales have the capacity to significantly influence the cryptocurrency market due to their substantial holdings. Their actions, whether buying or selling large quantities, can impact market sentiment and alter price directions.
Whales can encompass various entities, including wealthy individuals and institutional investors like investment firms and hedge funds. In some cases, they engage in Over the Counter (OTC) trading to avoid overwhelming conventional cryptocurrency markets with their large orders.
In Proof of Stake (PoS) blockchains, whales possess significant influence in on-chain governance processes due to their substantial holdings, granting them more voting power. This influence can be both positive, contributing to network stability and growth, or negative, potentially centralizing power within the network.
Crypto enthusiasts and investors closely monitor whale activity, as their moves can trigger significant price fluctuations and provide insights into market sentiment.