- A great whale has sold some of its ETH holdings
- Altcoin’s price fell, while Ethereum’s network growth also slowed
Ethereum [ETH]The company’s stock has registered a huge rise in recent weeks, fueled by news of new spot ETFs for ETH. Despite the optimism surrounding the network, a large whale recently decided to sell its assets.
Whales shy away
On June 8, a major transaction took place on the Ethereum blockchain. A large whale transferred 15,200 ETH, worth approximately $56.47 million, to Kraken. This particular address received huge amounts of 67,000 ETH directly from the Ethereum Foundation. It is further believed that this same address also received an initial 200,000 ETH during the Ethereum Genesis block, which likely meant participation in the ICO (Initial Coin Offering) that launched the Ethereum network.
Here it is worth noting that despite this recent transfer, the wallet still contains a balance of 41,000 ETH – worth approximately $151 million.
This large transaction could be interpreted by some investors as a sign that the whale is losing confidence in Ethereum’s future, prompting it to sell its holdings. This fear-based selling could cause a domino effect, causing the price to drop further.
Furthermore, the unknown purpose behind the transfer may lead to further uncertainty.
Source:
How is ETH doing?
At the time of writing, ETH was trading at $3,683.83, with a lower price by 3.14% in the last 24 hours. However, despite this sudden drop in the price of ETH, the overall trend of the price movement looked relatively positive.
And yet, network growth for ETH has slowed significantly in recent days, implying that new addresses lost interest in ETH and were not ready to purchase ETH at the current rate. If the price drops further, there is a chance that ETH will look lucrative to new investors in the future.
Coupled with declining network growth, the speed at which ETH was traded also dropped significantly.
Source: Santiment
In terms of overall activity on the network, gas consumption on the Ethereum network has decreased in recent days. Additionally, overall NFT transactions on the network also plummeted.
The lack of activity in the Ethereum ecosystem could be detrimental to both the network and the price of ETH in the long term.
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Source: Santiment