A Dormant Ethereum Whale Transfers $90 Million Worth of ETH to Kraken Exchange
An Ethereum whale that had been inactive for over five years recently made a significant move by transferring its entire balance of 39,260 ETH, worth nearly $90 million, to the Kraken exchange. This unexpected activity has sparked speculation among market observers.
Why Does This Transfer Matter?
The activation of this dormant Ethereum wallet and the transfer to Kraken could have implications for the price outlook of Ethereum. Whales often transferring crypto to exchanges can signal potential selling pressure or a conversion of holdings to other tokens. Therefore, this large ETH transfer could impact Ethereum’s market price and volume if the holder decides to sell or convert their assets.
The Genesis of the Story
Blockchain analysis reveals that this whale address first received 47,260 ETH in 2017, valued at $11 million at the time. The wallet remained inactive until Tuesday morning when its entire balance was deposited to Kraken in a single transaction. Prior transactions from the address did not correspond to any exchange’s storage wallets, although there may be some connection to trading firm Cumberland based on additional analysis.
An early ETH whale appears to be selling ETH again after being dormant for 5 years. The whale deposited all 39,260 ETH ($87.5M) to Kraken 30 mins ago. The whale received 47,260 ETH ($11.34M) at ~$240 from June to August 2017. If sold, the whale would make a profit of ~$78M.
— Lookonchain (@lookonchain) December 5, 2023
The Fascination and Influence of Crypto Whales
Crypto whales are of great interest and influence due to their ability to move markets. When whales accumulate tokens, it can indicate strength and stability in an asset. On the other hand, when they transfer tokens to exchanges, it often precedes selling or conversions to other cryptocurrencies. Any sudden change in supply and demand has an impact on pricing.
While Kraken has sufficient liquidity to handle a $5 million Ethereum trade without significant market swings, a $90 million sell-off could induce greater volatility. Experienced whales may break their orders into smaller chunks to minimize disruption.
Hot Take: The Power of Crypto Whales
The recent awakening of this dormant Ethereum whale and its migration of funds after five years highlights the extraordinary concentration of wealth and influence that crypto whales possess over prices. Their actions can significantly impact the market for better or worse.
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