Main navigation

Ancient Ethereum ICO Era Wallet Starts Moving Almost $60 Million Suddenly

Mon, 01/23/2023 - 08:26
article image
Arman Shirinyan
Whale who has not been active for long time suddenly moves assets to contract wallet
Ancient Ethereum ICO Era Wallet Starts Moving Almost $60 Million Suddenly
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Ethereum wallets that were active back in the ICO era on Ethereum suddenly started moving large sums to related wallets. On-chain specialists assume that funds are moving to staking contracts.

Initially, funds on the ICO wallet started moving back in October. The wallet that has been dormant for six years moved almost 50,000 ETH to staking, worth approximately $80 million.

Later on, the wallet received 120,000 ETH at Genesis with three addresses, making it one of the biggest entities on the whole network that are not related to cryptocurrency exchange. However, shortly after, the whale decided to move $53 million worth of funds received from Genesis to a new address — 5 hours ago.

Why do dormant addresses matter?

While it may seem like the movement of funds on whales' addresses is not important, the general tendencies we can highlight from their actions is what really matters. A large number of noteworthy Ethereum addresses has been actively moving funds to staking addresses, which is a signal in and of itself.

Cardano Wallet Adds Support for Milkomeda

Ethereum's staking contract temporarily locks the funds of investors until the staking period is over, practically removing a significant amount of ETH out of market circulation. In addition to burning operations, a large percentage of the staked Ethereum supply may act as a bullish factor for Ethereum, considering the fact that some percentage of the supply does not hit the market.

As whales like one we discovered move funds to staking, we should expect far less selling pressure on the market in the foreseeable future. Unfortunately, Ethereum staking is a double-edged sword: when funds get unlocked, investors should brace themselves for a rapid spike in ETH sales and abnormally high volatility.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.