Crypto Traders: From Bulls to Chicken Nugs Overnight

by

Oh, crypto traders, you fickle bunch of digital cowboys. Apparently, you’re still hanging around prediction markets, but now you’re all like, “Nah, I’m good, I’ll just watch from the sidelines with my Funyuns.” New on-chain analysis from BeInCrypto (aka the Sherlock Holmes of blockchain) shows that your high-conviction trading on Polymarket has gone colder than a winter in Antarctica. Peaked in December and January? Sure. But now? You’re basically ghosting the market like it’s a bad Tinder date.

And let’s be clear, this data isn’t tracking the folks who just scroll through their crypto apps while pretending to work. No, it’s all about the wallets that actually do stuff-you know, the ones that scream, “I’m here to make bad decisions with my money!” But even those brave souls are now thinking, “Maybe I’ll just buy another NFT of a bored ape instead.”

High-Conviction Crypto Activity: From Hot to Not

BeInCrypto’s analysts (bless their data-loving hearts) have been stalking daily maker activity on Polymarket like it’s their ex’s Instagram. They filtered out everything except crypto-tagged markets-Bitcoin, Ethereum, meme coins, NFTs, and airdrops. Basically, all the things your grandma still doesn’t understand.

Because this dataset only counts makers (the ones actually risking their sweet, sweet crypto), it’s like a spotlight on who’s still willing to dance in the fire. Spoiler alert: not many. Two waves of engagement? Sure. But now it’s more like a ripple in a kiddie pool.

First wave in late December? 30,000 wallets feeling spicy. Second wave in early January? 40,000-45,000 wallets thinking, “This is my year!” But after January 9? Crickets. Daily activity dropped faster than my New Year’s resolutions.

Bitcoin: The Cool Kid Who Also Got Benched

Even Bitcoin, the LeBron James of crypto, couldn’t escape this chill. A Dune chart (not the desert, the data kind) shows Bitcoin-only maker wallets were all in during December and January, but then they were like, “Peace out.” By January 18, only 2,875 wallets were still in the game. That’s fewer than people who actually enjoy kale smoothies.

So, yeah, this wasn’t just about meme coins or NFTs. Even Bitcoin, the OG, felt the freeze. It’s like the entire crypto party ran out of punch and everyone went home early.

Polymarket: Still the Prom Queen, But the Dance Floor’s Empty

Weekly data shows Polymarket is still the most popular kid in school, but even it’s noticing fewer people are asking it to dance. During the peak weeks, there were 200,000-300,000 users across platforms. But now? The makers are sitting this one out, even though the party’s still going.

So, what’s the deal? Traders didn’t ghost prediction markets entirely. They’re just being pickier than a cat with a new brand of food. Less liquidity, less risk-basically, everyone’s suddenly risk-averse like they just watched The Big Short for the first time.

Liquidity Providers: The First to Leave the Party

Here’s the thing: liquidity providers are like the cool kids who leave the party early to make everyone else feel like they’re missing out. When volatility drops or the hype dies, they stop posting orders but keep one eye on the door. And that’s exactly what happened here. Maker activity dropped like a mic after January, signaling a “risk-off” vibe that’s more obvious than a fidget spinner in 2017.

This isn’t just crypto being crypto. It’s the same story in DeFi and derivatives-funding rates drop, open interest shrinks, and suddenly everyone’s acting like they never cared about yield farming in the first place.

So, what’s the takeaway? Crypto traders haven’t abandoned prediction markets, but they’re definitely not sliding into the DMs with their wallets anymore. Fewer are willing to provide liquidity or take risks, which basically means the crypto sentiment is now “meh” with a side of “let’s wait and see.”

In Tina Fey’s words: “Crypto traders, you’re like a reality TV star-all drama until the cameras stop rolling. Now go buy a latte and rethink your life choices.”

Read More

2026-01-21 22:11