Crypto Whales Scoop Up $1,000,000,000 Worth of Ethereum (ETH) in Just Four Days, Says Analyst
A closely followed analyst says that deep-pocketed crypto investors have accumulated a massive stockpile of Ethereum (ETH) in just four days.
In a new thread on the social media platform X, crypto strategist Ali Martinez tells his 92,300 followers that crypto whales have scooped up hundreds of thousands of ETH in less than one week
“Ethereum whales have bought over 280,000 ETH in 96 hours, valued at around $1 billion
Ethereum is trading for $3,725 at time of writing, a 1.5% increase during the last day.
The London-based investment management firm Farside Investors is also keeping an eye on ETH. According to the firm, inflows into Ethereum exchange-traded funds (ETFs) are
Ethereum (ETH) is one of the most widely used and influential blockchain platforms. It is known for enabling smart contracts and decentralized applications (DApps). Here's a comprehensive overview:
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What is Ethereum?
Ethereum is a decentralized, open-source blockchain platform created by Vitalik Buterin and launched in 2015. Unlike Bitcoin, which primarily serves as a digital currency, Ethereum offers a platform for developers to build and deploy decentralized applications (DApps) using smart contracts.
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Key Features
1. Smart Contracts:
Self-executing contracts with predefined rules written in code.
Eliminates the need for intermediaries.
2. Ether (ETH):
The native cryptocurrency of the Ethereum blockchain.
Used to pay transaction fees (gas fees) and for staking.
3. Decentralization:
Operates on a global network of nodes without centralized control.
4. Ethereum Virtual Machine (EVM):
The runtime environment for executing smart contracts.
Ensures that all computations on the Ethereum network produce the same results.
5. DApps and DeFi:
Ethereum powers most of the decentralized finance (DeFi) ecosystem and hosts thousands of DApps, including NFTs (Non-Fungible Tokens) and DAOs (Decentralized Autonomous Organizations).
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How Ethereum Works
1. Blockchain:
Ethereum records transactions in blocks, which are linked to form a chain.
Validators secure the network by confirming and adding transactions to the blockchain.
2. Proof of Stake (PoS):
Transitioned from Proof of Work (PoW) to Proof of Stake with Ethereum 2.0 in 2022.
Validators stake ETH to propose and validate new blocks, making it more energy-efficient.
3. Gas Fees:
Users pay gas fees in ETH for executing transactions and smart contracts.
Gas fees depend on network activity and transaction complexity.
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Ethereum 2.0 (The Merge)
Upgraded Ethereum's consensus mechanism to Proof of Stake.
Goals:
Scalability: Improve transaction speed and reduce congestion.
Security: Enhance network resistance to attacks.
Sustainability: Lower energy consumption compared to Proof of Work.
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Use Cases
1. Decentralized Finance (DeFi):
Platforms like Uniswap, Aave, and Compound operate on Ethereum.
Enables lending, borrowing, and trading without intermediaries.
2. NFTs:
Ethereum hosts major NFT marketplaces like OpenSea and Rarible.
Supports the ERC-721 and ERC-1155 token standards for NFTs.
3. Gaming:
Blockchain-based games like Axie Infinity and Decentraland are built on Ethereum.
4. Supply Chain:
Tracks and verifies the origin and movement of goods.
5. Enterprise Solutions:
Companies use Ethereum for secure data sharing, tokenization, and more.
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Advantages
Decentralized: No central authority.
Secure: Cryptographic techniques ensure data integrity.
Versatile: Supports a wide range of applications beyond finance.
Challenges
1. Scalability:
High demand often leads to network congestion and high gas fees.
2. Energy Efficiency (Pre-Merge):
Ethereum’s PoW mechanism consumed significant energy before transitioning to PoS.
3. Competition:
Competes with other blockchain platforms like Binance Smart Chain, Solana, and Cardano.
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Key Metrics
Ticker: ETH
Current Supply: ~120 million ETH (as of 2024).
Market Cap: Second-largest cryptocurrency by market capitalization.
Circulating Supply Mechanism: Reduced issuance due to Ethereum 2.0 and EIP-1559.
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How to Get Ethereum
1. Buy on Exchanges: Platforms like Binance.
2. Staking: Earn ETH by staking your existing tokens to validate transactions.
3. Mining (Before PoS): Was possible via GPUs; replaced by staking.
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