Smart Money Token Inflows
Market Meditations | November 10, 2021
To find this on Nansen, navigate to the Smart Money section and go to the Token Holdings tab.
(1) Smart Money Stablecoin Exposure Rising
- Tether and Binance USD holdings have increased by over $100m in the last day
- This is reflected by a short term spike in the amount of stablecoins owned by smart money as a % of their total portfolio
- This may indicate that they have used the recent upwards price movement as an opportunity to reduce risk and take profits
(2) Ethereum Name Service (ENS) Airdrop
- Smart Money has seen a large increase in ENS token holdings
- ENS is a service that allows you to purchase ‘domain names’ that can replace a standard wallet address (for example marketmeditations.eth)
- Yesterday the ENS token launched, and allowed anyone that has ever owned an ENS name to claim ENS tokens (if this includes you check our their guide for more details)
- If you want to make sure you don’t miss more airdrops check out DeFi Llama’s Airdrop List
(3) Liquity: Justin Sun and Three Arrows Capital
- Liquity is a 0% interest, Eth borrowing platform.
- Recently, Justin Sun transferred $21m worth of LQTY to Three Arrows Capital
- The reason for this transaction is unclear and it doesn’t necessarily mean that 3AC have purchased these tokens. However it has certainly caught our attention and we will continue to keep an eye on the protocol.
Conclusion
Tracking changes in token holdings across the smart money segment can reveal a large number of profit making opportunities. It allows us to find the exact tokens which smart money is buying or selling and highlights the rest of their decentralised activity.
What’s more is that as adoption of alternate layer 1s increases, so does Nansen’s support.
Currently Ethereum, Polygon, Binance Smart Chain and Fantom can all be explored.
However, recently, Nansen officially announced that they will be integrating with Solana in the near future. Given how few analytics platforms are currently available for Solana, this will provide a huge advantage over the rest of the market.
