Ethereum Whale Bags $78M Profit from $11M Investment

Jonathan Stoker Dec 08, 2023, 01:50am 142 views

Ethereum Whale Bags $78M Profit from $11M Investment

Ethereum Whale Moves Assets, Fuels Speculation of Sale

Crypto analytics firm LookonChain has reported a significant movement from a long-dormant EthereumEthereum$2,315 -2.42% (ETH) whale. The whale, which accumulated 47,260 ETH valued at approximately $11.34 million between June and August 2017, has been inactive for the past five years.

Tracking the Whale's Movements

LookonChain's analysis highlights that the average cost per coin for the whale was around $240. Since 2017, ETH's price has surged by approximately 838%. It was drawn to attention that on December 5, 2023, the whale transferred an eye-catching 39,260 ETH, which equals around $87.5 million, into cryptocurrency exchange KrakenKraken. If the whale goes ahead with selling its holdings, it stands to make a profit of roughly $78 million.

Ethereum NFT Market Sees Significant Growth

Simultaneously, there has been a noticeable boom in the Ethereum NFT market, with transaction volume hitting $34 million. This may also impact the whale's decision on whether to hold or sell.

Speculations Arise on Possible Sale

The considerable movement of assets to exchanges often signals a bearish trend as it increases the probability of assets being sold. Thus, there is speculation that the whale may sell off its Ethereum (ETH) holdings and book profits. Currently, the wallet in question has already realized a profit of around $78 million.

Ethereum: A Network Redesign in the Works?

Crypto analysts are also keeping a close eye on the network itself. Ethereum's co-founder, Vitalik Buterin, has reportedly been considering a redesign of the network, which could have significant implications for ETH's value.

Examining Potential Scenarios

When Ethereum (ETH) achieved its all-time high of $4878.26 in November 2021, the value of the whale's holdings was roughly $230 million. With a bullish phase anticipated for the cryptocurrency sector in 2024, assets like ETH and BitcoinBitcoin$42,260 -0.64% (BTC) may reach new all-time highs. Consequently, the value of the whale's holdings could potentially surge in the forthcoming months, leading some to believe that the whale may choose to hold onto its assets for now.

Analysts have speculated that if ETH were to reach $10,000 in the next bull run, the whale's holdings could be worth an astonishing $472.6 million. It seems unlikely that any investor or group of investors would willingly pass up the chance to accrue close to half a billion dollars.

A Temporary Reorganization?

Alternatively, it is plausible that the whale is merely reorganizing its assets. The Ethereum (ETH) might be temporarily held in an exchange before being transferred back to a hard wallet. Only time will reveal the true intentions of this Ethereum whale.

Edited by Jonathan Stoker

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