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Decentralization Threatened as Large Holders Manipulate Volatility in the Crypto Market

Decentralization Threatened as Large Holders Manipulate Volatility in the Crypto Market

Bitget-RWA2025/09/28 02:42
By:Coin World

- Whale traders moved $270.8M ASTER tokens (7% of supply) to XPL via USDC, exploiting arbitrage and volatility. - Galaxy Digital boosted Solana holdings and engaged in ASTER's ecosystem, reflecting institutional DeFi adoption trends. - SEC scrutiny looms over ASTER's 93% supply concentration in five wallets, raising market manipulation concerns. - Whale-driven price swings and liquidity imbalances intensify ASTER's challenge to Hyperliquid's $18.9B dominance. - Regulatory uncertainty and Bitcoin's stagnati

Decentralization Threatened as Large Holders Manipulate Volatility in the Crypto Market image 0

Crypto Tsunami: The Impact of Whales on ASTER’s Trajectory and Beyond [ 1 ] Massive Whale Transfers Shake Up ASTER and XPL Markets [ 2 ] Whale Trading Unveiled: The Powerful Force in the Shadows - OneSafe Blog [ 3 ] ASTER’s Prospects: Can Whale Activity and Strong Fundamentals Ignite Growth? [ 4 ] Aster (ASTER) Versus Binance Coin (BNB): A Comparative Analysis | Crypto Compare [ 5 ] Is CZ-backed Aster Capable of Challenging Hyperliquid’s $18B Lead? [ 6 ] CZ’s Role Drives Surges in BNB and ASTER as Optimism Returns [ 7 ] Binance’s Influence Sends Aster Token Soaring 2000%: The HYPE War [ 8 ] BTC Pauses as Whales Trigger a Selling Wave - CoinDesk [ 9 ] Where Are Whales Investing in Crypto Right Now? [ 10 ] Whale Alert: Live Crypto Transaction Tracking [ 11 ] Bitcoin Whale Awakens After 12 Years, Moves 1,000 BTC [ 12 ] Whale Activity: Up-to-the-Minute Crypto Market Analysis [ 13 ]

There has been a notable transformation in the crypto landscape as substantial transfers of ASTER and

tokens have caught the eye of both analysts and market participants. Recent on-chain statistics show a $270.8 million transaction involving 118.25 million ASTER tokens—about 7% of the total in circulation—followed by a calculated shift into XPL. Monitored by services like Lookonchain and OnchainLens, these moves highlight the increasing power of whale investors in dictating token prices and market liquidity. The trades, executed using stablecoins such as , demonstrate a targeted approach to exploiting arbitrage and market swings.

Major institutions, notably

, have played a significant role in these developments. The company recently purchased 6.5 million (worth $1.55 billion) and expanded its portfolio, while also engaging with ASTER’s ecosystem through YZi Labs, its previous Binance Labs division. These actions reflect a broader movement of institutional involvement in decentralized finance (DeFi), where managing liquidity and making strategic token investments are essential. The shift from ASTER to XPL especially signals a reaction to competition from platforms like Hyperliquid, which leads the perpetual derivatives sector with a market cap of $18.9 billion.

Whale maneuvers have had a direct effect on price volatility. For example, Cooker, a prominent trader, sold 575,045 ASTER for $1.18 million in USDC and then took a leveraged long position in XPL, resulting in unrealized gains of over $1 million. Such trades have led to sharp price changes and liquidity disruptions, as market experts have observed. Additionally, a single whale acquired 55 million ASTER (valued at $115.48 million) within two days, enduring a $13.18 million unrealized loss, which suggests a strong belief in the asset’s future. These bold moves have fueled speculation about ASTER’s ability to rival Hyperliquid, though its $1.6 billion market value is still much smaller than Hyperliquid’s.

Regulatory concerns remain a significant risk. The U.S. Securities and Exchange Commission (SEC) has not yet addressed these trades, but the fact that five wallets control 93% of ASTER’s supply has raised alarms about possible market manipulation. Detractors argue that this level of concentration contradicts the decentralized principles of the crypto sector. At the same time, WLFI token burns that happened alongside whale trades have produced mixed results for liquidity. While they have decreased the available supply, their effect on price steadiness has varied, with ASTER’s price stabilizing near $1.80 after a dramatic 2,000% surge in September.

The broader impact of these strategies goes beyond short-term price moves. ASTER’s response to a recent XPL contract malfunction—which temporarily pushed prices from $1.30 to $4—showed its ability to handle sudden market events while maintaining user confidence. This adaptability, together with aggressive reward programs—like distributing 50% of ASTER’s tokens to active users—has kept engagement high. Still, critics caution that heavy reliance on whale-driven excitement and concentrated token ownership could set the stage for a correction, especially if Bitcoin’s stagnation around $112,558 continues to weigh on the overall market.

Market analysts advise vigilance. Past incidents, such as flash loan attacks between 2019 and 2023, indicate that volatility driven by whales is likely to continue. Experts like Altcoin Sherpa point out that ASTER’s current consolidation in the $1.70–$1.75 range is crucial, with further drops possibly testing the $1.57–$1.63 support zone. Meanwhile, the influence of token burns and liquidity trends will be key in determining whether ASTER can keep its momentum or faces a more significant pullback.

The evolving relationship between whale activity, institutional moves, and regulatory oversight will shape the next chapter for digital assets. As ASTER and XPL continue to draw major investments, maintaining a balance between innovation and systemic risk will require increased attention from both industry players and regulators.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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