Ethereum Surges Past $3,500 as Smart Whale Shifts Focus
The world’s second-largest cryptocurrency, Ethereum (ETH), has experienced a significant rally, with its price surpassing $3,500. This surge has resulted in weekly gains of over 12% for Ethereum, which now has a market cap of $416 billion. In the last 24 hours alone, Ethereum’s trading volumes have increased by 43% to reach over $16 billion.
Smart Whale Moves from Bitcoin to Ethereum
Insights provided by on-chain data provider LookonChain reveal a noteworthy change in whale activity within the crypto market. A smart whale, who was previously bullish on Bitcoin (BTC), has now shifted their investment strategy and become bullish on Ethereum (ETH).
LookonChain’s data shows that this smart whale executed a series of transactions to take advantage of their new positive outlook on Ethereum. They initially swapped 1,500 ETH for 88.68 Wrapped Bitcoin (WBTC) on February 26, equivalent to approximately $4.58 million. This swap was made at a rate of 0.05913.
Subsequently, the investor capitalized on market dynamics and reversed their position. They exchanged the 88.68 WBTC back to 1,597 ETH, valued at around $5.57 million at a rate of 0.05554 today. This strategic move resulted in a profit of 97 ETH, equivalent to approximately $338,000.
Ethereum’s Upcoming DenCun Upgrade
The entire crypto community is eagerly awaiting the launch of Ethereum’s DenCun upgrade, which is just a few days away. This upgrade is expected to revolutionize Ethereum by reducing the cost and complexity of layer-2 transactions.
Once DenCun is implemented and settlement contracts across all layer-2 networks are updated within a month or two, gas fees on most layer-2s are expected to decrease significantly. This reduction in fees will be possible if the networks pass on the savings to users.
The DenCun upgrade introduces a new feature called “blobs,” which enables temporary data storage on Ethereum through proto-danksharding. Currently, permanent data storage on Ethereum is prohibitively expensive. However, with proto-danksharding, layer-2 data can be stored temporarily for approximately a month at a much lower cost while maintaining the same level of security.
Analysts predict that the successful implementation of the DenCun upgrade could push the ETH price even higher, potentially reaching $4,000. Additionally, market attention this week is focused on the SEC’s decision regarding Fidelity’s Ethereum spot ETF application. However, market consensus suggests that approval for the application is highly unlikely.
Hot Take: Ethereum Continues to Shine as Smart Whale Makes Strategic Move
Ethereum’s recent rally and surge past $3,500 have solidified its position as one of the top cryptocurrencies in the market. With its weekly gains exceeding 12%, Ethereum continues to attract attention from investors and traders alike.
One notable development is the smart whale’s shift from being bullish on Bitcoin to becoming bullish on Ethereum. This strategic move demonstrates confidence in Ethereum’s potential and its ability to generate profits in a volatile market.
Furthermore, the upcoming DenCun upgrade has sparked excitement within the crypto community. If successful, this upgrade could significantly reduce transaction costs and complexity, making Ethereum an even more attractive platform for developers and users alike.
As Ethereum continues to make strides in terms of price performance and technological advancements, it remains a cryptocurrency to watch closely. Its ability to adapt and innovate sets it apart from other digital assets in the market.
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