Ethereum Whale Bags $78M Profit from $11M Investment
- Ethereum Whale Moves Assets, Fuels Speculation of Sale
- Tracking the Whale's Movements
- Ethereum NFT Market Sees Significant Growth
- Speculations Arise on Possible Sale
- Ethereum: A Network Redesign in the Works?
- Examining Potential Scenarios
- A Temporary Reorganization?
Ethereum Whale Moves Assets, Fuels Speculation of Sale
Crypto analytics firm LookonChain has reported a significant movement from a long-dormant Ethereum$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 Kraken. 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 Bitcoin$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.
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