A two-year-long HODLing strategy has earned an investor around a 90% increase on his Ethereum (ETH) investment. During the harsh crypto market of 2022, this cryptocurrency investor acquired 96,639 ETH from American digital asset exchange Coinbase between September 3 and 4.
Investor Defies Harsh Market Conditions
By the time this investor made the purchase, Ethereum was only trading at roughly $1,567. Therefore, the entire holding was worth $151.42 million. Noteworthy, blockchain analytics platform Lookonchain identified these transactions.
After this time, the market condition became extremely harsh, contributed by the collapse of TerraUSD-LUNA and later the FTX exchange. The “diamond hand” investor is evidence that holding crypto assets long-term could be a better investment than panic selling.
Ethereum Investor Buys the Dip
Six months after they were acquired, the Investor’s wallet address transferred 70,000 ETH to the Kraken exchange. The Ethereum sent in multiple transactions was equivalent to 72% of the initial holding. When this transfer was made, the second largest cryptocurrency by market cap had a value of $3,062. At this price level, it was worth 214.34 million.
This is a smart diamond hand, buying $ETH in the bear market and selling $ETH in the bull market, making $131.72M!
This whale bought 96,639 $ETH($151.42M) from #Coinbase at $1,567 on Sept 3 and Sept 4, 2022.
Then deposited 70,000 $ETH($214.34M) at $3,062 to #Kraken since Mar… pic.twitter.com/yuAe5LMy7h
— Lookonchain (@lookonchain) September 22, 2024
The remaining 26,639 ETH in their wallet from the original purchase was valued at $68.81 million. Altogether, the diamond hand Investor’s ETH holding summed up to 283.15 million. Obviously, the investor’s decision to buy the dip helped him bag huge profits, almost as high as the initial funds invested from the beginning.
Ethereum Price Still on The Low
Lookonchain identified this wallet only a few days after Ethereum Foundation, a prominent non-profit organization, made headlines with the significant sales of ETH. Precisely, this Foundation offloaded 300 Ethereum, valued at $760,000, at an average price of $2,543.
While the Ethereum price has improved over time, it has yet to live up to the expectations of analysts and market observers. Even the approval from the United States Securities and Exchange Commission (SEC) for spot Ethereum ETF trading has not done much to prove the coin’s price. At the time of this writing, ETH was trading at $2,582.53, with a 0.56% increase in the last 24 hours.
Analysts and investors are looking forward to when Ethereum eventually hits $4,000.
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