In the latest weekly report from Lookonchain covering February 16 to February 22, 2026, the cryptocurrency market displayed a mix of caution and strategic accumulation amid declining trading volumes. As an expert in cryptocurrency trading analysis, I'll dive into these developments, highlighting key trading opportunities, market sentiment, and institutional flows that could influence BTC and ETH price movements. This report underscores a period of reduced activity on decentralized exchanges (DEXs), yet with notable whale and institutional buys that might signal underlying bullish sentiment for major cryptocurrencies like Bitcoin and Ethereum.

Declining DEX Volumes and Protocol Revenues: Implications for Crypto Trading

The sharp drop in DEX spot and perpetual futures volumes last week points to a broader slowdown in retail and leveraged trading activity across major blockchain networks. According to Lookonchain, this decline coincided with weakened protocol revenues on chains like Ethereum and others, suggesting lower transaction fees and reduced on-chain engagement. For traders, this could indicate a consolidation phase where volatility might decrease, creating opportunities for range-bound strategies. Without immediate real-time data, we can infer from historical patterns that such volume drops often precede major price swings, especially if institutional players continue accumulating. Keep an eye on support levels for BTC around $65,000 and ETH near $3,000, as these could serve as entry points for long positions if sentiment rebounds.

Institutional Accumulation Amid Market Caution

One of the standout elements in the report is the significant purchases by institutional entities. Bitmine acquired an additional 51,162 ETH valued at $98.33 million, while Strategy scooped up 592 BTC for $39.8 million at an average price of $67,286 per BTC. These moves, timestamped within the February 16-22 window, reflect confidence in the long-term value of these assets despite the overall market dip. From a trading perspective, such whale activity often acts as a bullish indicator, potentially driving upward momentum through increased liquidity and positive sentiment. Traders might consider monitoring on-chain metrics like transfer volumes to Ethereum whales or Bitcoin accumulation addresses, as these could validate breakout signals above resistance levels such as BTC's $70,000 mark.

Conversely, the report notes that eight public companies collectively reduced their Bitcoin holdings by 58.02 BTC, amounting to a $3.8 million decrease. This sell-off, while modest, highlights a divergence in corporate strategies, with some entities trimming exposure amid uncertain market conditions. For crypto investors, this could amplify focus on cross-market correlations, such as how stock market fluctuations in tech sectors influence BTC and ETH. If traditional markets show resilience, it might encourage more institutional inflows into cryptocurrencies, presenting trading opportunities in pairs like BTC/USD or ETH/BTC for arbitrage plays.

Stablecoin Growth and Vitalik's ETH Sales: Broader Market Sentiment

Adding a layer of optimism, the total stablecoin market capitalization grew by $1.14 billion last week, according to Lookonchain. This expansion typically signals fresh capital entering the ecosystem, often prelude to increased buying pressure on volatile assets like BTC and ETH. Traders should watch stablecoin inflows to exchanges as a leading indicator for potential rallies, especially in a low-volume environment where even moderate buys can trigger significant price action.

However, Vitalik Buterin's resumption of ETH sales after a two-week pause introduces a counter-narrative. As the Ethereum co-founder, his on-chain activities are closely watched and can sway market sentiment. These sales, detailed in the report, might pressure ETH prices short-term but could also be viewed as routine portfolio management. In trading terms, this warrants caution for ETH longs, with potential support tests around recent lows. Overall, the blend of institutional buys and stablecoin growth suggests a market poised for recovery, urging traders to adopt balanced strategies incorporating both fundamental analysis and technical indicators like RSI and moving averages.

Trading Opportunities and Risk Management in Crypto Markets

Looking ahead, the interplay between declining volumes and strategic accumulations creates fertile ground for informed trading. For instance, if BTC holds above $67,000—echoing Strategy's purchase price— it could target $75,000 in the coming weeks, driven by institutional momentum. Similarly, Bitmine's ETH buy reinforces bullish cases for Ethereum upgrades, potentially boosting DeFi-related tokens. Traders should prioritize risk management, using stop-losses below key supports and diversifying across BTC, ETH, and stablecoin pairs to mitigate downside risks from events like Vitalik's sales.

In summary, this Lookonchain weekly report from February 2026 paints a picture of a crypto market in flux, with weakened revenues offset by robust institutional interest. By focusing on these dynamics, traders can navigate the landscape effectively, capitalizing on emerging trends in cryptocurrency trading volumes, whale activities, and market cap expansions. Stay updated on on-chain data for timely entries and exits, ensuring your strategies align with evolving sentiment in BTC and ETH markets.