Dolphin Definition
In the context of cryptocurrency and blockchain, a Dolphin is a term used to describe an individual or entity that owns a moderate amount of a particular cryptocurrency. They are not as wealthy as whales (who own significant amounts of cryptocurrency), but they have more holdings than the average investor or ‘fish’. Dolphins have enough holdings to influence the market, but their impact is not as substantial as that of whales.
Dolphin Key Points
- Dolphins are mid-level cryptocurrency holders.
- They own more cryptocurrency than the average investor but less than whales.
- Dolphins have the potential to influence market trends but their impact is not as significant as whales.
- The term is derived from the oceanic food chain metaphor used in the crypto space.
What is a Dolphin?
A Dolphin in the cryptocurrency world is an investor who holds a moderate amount of a specific cryptocurrency. The term is part of a metaphorical hierarchy used in the crypto community, where different types of investors are compared to sea creatures. The size of the creature corresponds to the amount of cryptocurrency the investor holds. In this hierarchy, ‘fish’ are small investors, ‘dolphins’ are mid-level investors, and ‘whales’ are large investors.
Why are Dolphins important?
Dolphins are important in the crypto market because they hold a significant amount of cryptocurrency, which gives them the potential to influence market trends. However, their impact is not as substantial as that of whales, who can cause significant price fluctuations with their trades. Dolphins can contribute to market liquidity and can help stabilize the market by not having as drastic an impact on prices as whales.
When did the term Dolphin originate?
The term Dolphin, along with other terms like ‘whale’ and ‘fish’, originated from the traditional financial markets where they were used to describe different types of traders based on their trading volume and influence on the market. These terms were later adopted by the cryptocurrency community and are now commonly used to describe different types of crypto investors.
Who are considered Dolphins?
Dolphins are typically investors who have been in the crypto market for a while and have accumulated a moderate amount of cryptocurrency. They could be individual investors with a high net worth or smaller institutional investors. The exact amount of cryptocurrency that qualifies someone as a dolphin can vary depending on the specific cryptocurrency and the overall size of its market.
How do Dolphins influence the crypto market?
Dolphins can influence the crypto market through their trading activities. Because they hold a significant amount of cryptocurrency, their buy and sell orders can impact the market price. However, their influence is not as substantial as that of whales, who hold even larger amounts of cryptocurrency. Dolphins can contribute to market liquidity, and their trades can help to stabilize the market by preventing drastic price fluctuations.
