According to Whale Alerts, an unknown wallet has transferred 80,000 ETH to the popular crypto exchange Kraken. The value of the Ethereum transferred is around $151 million.
Although there is no confirmation whether the whale intends to sell the ETH transferred, assets moving from cold wallets into exchanges are never a good sign. It increases the chances of the coins being dumped on the market.
Yesterday, the Fed announced another 25 basis point interest rate hike. Moreover, the announcement was followed by Bitcoin (BTC) moving past $29k, and Ethereum (ETH) moving close to $1.9k. However, it is possible that the whale in question is not convinced about the economic outlook. Perhaps the wallet owner anticipated more volatility or even a price correction in the near future.
Parallely, Nansen data indicated that Solana (SOL) recently surpassed Ethereum (ETH) in the number of active on-chain addresses. Although SOL’s number of on-chain active addresses dropped 12% since March, it was still enough to outshine ETH. The development could also be a reason for the whale to have become weary.
Although $151 million worth of ETH moving to an exchange is a negative sign, there are some positive developments surrounding the Ethereum ecosystem.
Ethereum 2.0 deposit contract reaches new milestone
As per the data on Glassnode, ETH 2.0 deposit contracts have reached a new all-time high. Contracts have reached 20,000,000 ETH, valued at approximately $38.1 billion.
An increase in deposit contracts can be inferred as higher confidence in the network. This is a bullish outlook as more investors anticipate a brighter future for ETH. Furthermore, as per Glassnode data, the total value staked has reached 18,028,839 ETH beginning of April 2023. Since the staking withdrawal was enabled, expected selling pressure hasn’t caused a significant dropdown in Ether’s value.
