A major Ethereum investor, often referred to in the cryptocurrency world as a “whale,” appears to be cashing in on a successful year, according to data analysis from blockchain intelligence service Lookonchain.
The investor, reportedly purchased a significant amount of Ether a year ago, at a price point of around $1,890 per token and has, over this past week, they initiated a series of transactions that suggest profit-taking.
The whale first withdrew 12,906 ETH, valued at roughly $24.39 million at the time, from the leading cryptocurrency exchange Binance. The tokens were then deposited into Lido, a platform that allows users to earn interest on their holdings through liquid staking – meaning users can earn interest by staking their ETH, while receiving a liquid token representing the staked assets that can be usd elsewhere.
This move could indicate the investor’s intention to hold the asset for the long term while earning passive income. However, their actions suggest a shift in strategy as on April 30, coinciding with a market dip, the whale withdrew 7,000 ETH from Lido and redeposited the funds back onto Binance.
This swift transfer, suggests the investor aimed to capitalize on a potential short-term price swing.
A whale who bought $ETH a year ago seems to be selling $ETH to take profits.He withdrew 12,906 $ETH($24.39M) from #Binance at $1,890 a year and deposited it into #Lido.He withdrew 7K $ETH from #Lido when the market dropped on Apr 30 and deposited it into #Binance 15 minutes… pic.twitter.com/wi4qSUllY1
— Lookonchain (@lookonchain) May 6, 2024
The total profit on the 7,000 ETH sold likely exceeds $16 million, highlighting the significant gains made by the whale since their initial purchase, according to the blockchain analysis service.
The price of the second-largest cryptocurrency by market capitalization saw a significant swing over the past week, dropping from around $3,250 to a low just above $2,850 before it started to recover to its initial starting point. The cryptocurrency has since started plunging, with ETH now trading below $3,100 again.
Year-to-date, the cryptocurrency is up more than 35% as it gained from a wider cryptocurrency market recovery that saw the flagship cryptocurrency Bitcoin rise by more than 50% over the same period.
Featured image via Unsplash.
