Recent on-chain data reveals a wave of activity from dormant Ethereum (ETH) wallets, as long-term holders capitalize on the cryptocurrency’s recent price spike. In the past 24 hours, Ethereum’s price has surged by 13.75%, prompting several well-known whales to take profits. This activity, involving some of Ethereum’s earliest investors, highlights the growing trend of big ETH holders liquidating portions of their positions as the price of the second-largest cryptocurrency by market cap rises.
According to Spot On Chain, two significant transactions have grabbed attention in the Ethereum community. The first transaction involved a wallet tied to an Ethereum ICO participant. The wallet ID, "0xB8c", transferred a massive 25,000 ETH (worth about $65.67 million) to the Kraken exchange as ETH’s price approached $2,627 per coin. This sale left the holder with 64,450 ETH, valued at roughly $181.2 million at the current market rate.
This movement represents a major cash-out from a long-term Ethereum holder, who likely acquired the ETH during the Ethereum ICO in 2014 when the price of ETH was just a few dollars. The sale of this significant amount of ETH suggests that, despite Ethereum's long-term growth, this holder might be taking advantage of the current price rally to realize profits.
Another notable transaction came from wallet "0x0c1," which had been dormant for an incredible 8.75 years. The wallet holder sold 8,701 ETH, totaling 24.05 million USDC or roughly $2,764 per ETH. This trade marked a 689-fold profit since the initial purchase, making it one of the most significant profit-taking events in recent memory. After the sale, this holder was left with 2,304 ETH, worth about $6.48 million at today’s prices.
The fact that the holder managed to turn a relatively small initial investment into millions through the simple act of holding highlights the enormous potential for profit in the Ethereum market. The 689-fold return is a testament to how long-term investment strategies can pay off handsomely, especially in a volatile market like crypto.
In addition to the two previously mentioned whale wallets, another dormant Ethereum holder, who had been inactive for almost nine years, also began selling. This wallet contained 12,001 ETH, valued at approximately $34.1 million at the time of sale. These coins were initially purchased for around $8.58 per ETH, meaning the holder’s current assets are worth about 330 times what they originally paid.
For this whale, the decision to sell is likely influenced by the significant appreciation in ETH’s value over the years. Given that this wallet had been inactive for nearly a decade, it’s reasonable to assume that the owner has seen substantial profits from their investment and may now be looking to cash out amid a favorable price environment.
One of the largest and most intriguing movements reported recently comes from a wallet holding 398,891 ETH, worth approximately $1.14 billion at the current price. This whale has also begun selling its holdings after being dormant for over eight years.
According to Lookonchain, the whale started selling Ethereum in the last 24 hours, offloading 13,400 ETH (worth about $37.38 million) at an average price of $2,790 per ETH. What makes this particular whale interesting is that the wallet has 28 linked addresses which were involved in buying ETH through ShapeShift in January 2016, when the price of Ethereum was just around $3.50 per ETH. The whale's purchases made during the early days of Ethereum have now turned into an incredible return on investment, prompting the current sale.
This massive sell-off is noteworthy, as it could indicate a shift in the whale's strategy. Given the size of the holdings and the recent price increase, it’s likely that the whale is either looking to diversify into other assets or taking profits ahead of potential market fluctuations.
The surge in Ethereum price has likely been the catalyst for these long-dormant wallets to take action. As ETH continues its strong upward momentum, it’s no surprise that many early holders are looking to cash out after years of holding.
Additionally, with Ethereum undergoing significant upgrades (such as Ethereum 2.0 and improvements to scalability), long-term holders might feel it’s the right moment to realize profits before any market volatility could potentially erode gains. The increased institutional interest in Ethereum, driven by growing adoption of DeFi (decentralized finance) and NFT (non-fungible token) projects, also contributes to the feeling that now might be the time to exit for some major investors.
Moreover, with ETH futures and potential spot ETFs on the horizon, institutional investors are finding it easier to gain exposure to Ethereum without holding the asset directly. This has sparked increased liquidity and trading activity, adding further pressure on some whales to capitalize on the current market environment.
With several significant whales liquidating their Ethereum holdings, some analysts are speculating that this could signal a top or a potential correction in the price of ETH. However, the fundamental outlook for Ethereum remains strong, especially with ongoing network upgrades, adoption of ETH 2.0, and Ethereum’s dominance in the DeFi space.
The current activity of dormant wallet sales suggests that long-term holders may be seizing the opportunity to secure profits, but Ethereum’s underlying value and continued ecosystem growth point to a potentially bright future for ETH. Investors will need to watch how the market reacts to this selling pressure and whether the broader crypto market remains bullish in the coming months.
Ethereum’s recent price surge has sparked a wave of activity in dormant wallets, with several whales offloading significant amounts of ETH. As the price climbs, long-term holders are cashing in on their massive profits, with some seeing returns as high as 689-fold. While these transactions indicate that some whales may be exiting the market, the overall outlook for Ethereum remains positive. As Ethereum continues to mature and develop its infrastructure, its price could see further gains, even as some of the earliest investors decide to take their profits.
November 2024, Cryptoniteuae