Transitioning to a cryptocurrency exchange may indicate that the investor is inclined to trade the asset for stablecoins or alternative tokens.
A conspicuously substantial holder of ether (ETH) transferred nearly $90 million worth of the cryptocurrency to the Kraken exchange after remaining inactive for a period of five years, as reported by the on-chain analytics tool Lookonchain on Tuesday. The significant entity, commonly referred to as a “whale” in crypto terminology, deposited 39,260 ether into Kraken during the early hours of the Asian morning, according to blockchain data. Notably, the wallet had previously received 47,260 ether, valued at just over $11 million at that time, from a single transaction back in 2017.
An early $ETH whale appears to be selling ETH again after being dormant for 5 years.December 5, 2023
The whale deposited all 39,260 $ETH($87.5M) to #Kraken 30 mins ago.
The whale received 47,260 $ETH($11.34M) at ~$240 from June to August 2017.
If sold the whale would make a profit of ~$78M. pic.twitter.com/v0PI4LNTKO
According to a CryptoMania analysis of the address, previous transactions do not appear to be linked to the cold storage of any exchange. Nevertheless, a data labeling tool called Arkham indicates that at least one transaction could potentially be associated with an address belonging to the trading firm Cumberland.
Transitioning to a cryptocurrency exchange typically implies that the holder might sell tokens for stablecoins, thereby intensifying selling pressure, or convert them into alternative tokens.