ETH whale is buying up ether, betting on its growth in the future
The activity of the crypto whale turned out to be more than a simple withdrawal of funds from the Binance crypto exchange. Judging by data from the analytical platform Lookonchain, the largest holder of ether took a cunning maneuver to increase its reserves of the second largest cryptocurrency by capitalization.
After acquiring an impressive 10,750 ETH on Binance in early May, the crypto whale converted all of these assets into stETH, a special token designed for Ethereum staking. It was these funds that opened up new opportunities for the large holder.
The wealthy user's next move involved the popular DeFi lending platform Aave. By placing his stETH there, the investor essentially secured his assets by borrowing an impressive $29 million worth of stablecoins. After that, using borrowed funds, the crypto whale began actively buying ether, betting on its future growth.
Of course, using a loan to buy cryptocurrency is a risky strategy that allows you to increase profits if the asset price rises, or, conversely, remain at a loss if the rate falls.
