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15,000 Ethereum (ETH) Tokens Taken off Exchange by Massive Whale, Here's Destination

Tue, 02/21/2023 - 16:00
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Tomiwabold Olajide
Whale's actions may have been for variety of reasons
15,000 Ethereum (ETH) Tokens Taken off Exchange by Massive Whale, Here's Destination
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According to on-chain data provider Lookonchain, a whale, or large holder, has moved 15,000 ETH worth $25.16 million from the Seychelles-based OKX crypto exchange.

The whale deposited a portion of its withdrawals — roughly 10,150 ETH worth $17 million — into DeFi via the protocols Compound and Aave. He or she then borrowed $10 million in USDC stablecoin, which was transferred to Circle.

Although the whale's actions may have been made for a variety of reasons, one particular motive may have been to avoid the current market fluctuations while still wanting to keep the particular cryptocurrency for a lot longer.

At the time of publication, ETH was down 1.87% at $1,682. 

Analysts suggest that the withdrawal of cryptocurrencies from exchanges to put in cold storage for safety or into DeFi to generate yield may indicate that investors are prepared to hold onto their cryptocurrency for a long time.

Users deposit digital assets into the "liquidity pools" of DeFi protocols, which become funds that could be lent out.

This often stems from a belief that the market could rise even further. Also, the whale was able to access liquidity by borrowing 10 million USDC stablecoin without having to sell his assets.

Ethereum (ETH) Burning Sets New High as Sentiment Booms: Details

Arbitrage, which involves buying an asset in one market and selling it right away in another market for a greater price, is one of the most obvious justifications for borrowing.

Since the beginning of the year, ETH, the native token of Ethereum, has increased by more than 40%, reaching its highest point in seven months at almost $1,750.

According to on-chain analytics firm Santiment, the Ethereum price increase follows the determination of shark and whale addresses that have accumulated 1.88 million ETH since November 2022.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.