Nearly $112 million of Ethereum was recently transferred to another anonymous cryptocurrency wallet by a mysterious whale account. Last night, at 10:30 IST, the transaction was completed. In the last several hours, the value of Ethereum has decreased somewhat. Nevertheless, it would be premature to conclude that the purchase was a factor in the decrease.
On Tuesday morning, Ethereum was trading at $3,822. During that period, the aforesaid bulk transaction happened. Ethereum was transferred from a wallet with the public key identifier of 0xa59e84f0b7ab7afd00006a619742ef7d259f1. In other words, the coins transferred had a worth of $111,966,629. The wallet address for the enigmatic account to which the funds were delivered was 0xe31d2d6c037762ebb9437513fbdae2df8390ed4e.
In the bitcoin market, there are a large number of whale accounts. Some of them put their names down, while others don’t. Large corporations are more likely to make an investment in cryptocurrencies and have them on hand as a kind of insurance. However, some early bitcoin investors may have made a profit and their original investment has now multiplied.
Whale accounts are watched by market participants to see how the market may be affected by a move by one or more whale accounts. For example, if the whale chooses to sell its Ethereum holdings, it will put enough pressure on the cryptocurrency’s price to cause it to fall. The selling pressure needed to reduce Ethereum’s price by 2% is between $15 million and $30 million (approximately Rs. 112 crores to Rs. 224 crores).
As the second-largest cryptocurrency by market capitalization grows in dominance, the Ethereum Whale’s move is timely. Even if Ethereum lagged behind Bitcoin in terms of market cap, it is still seen as the only currency with the capacity to really compete with Bitcoin.