The Ethereum price development has been fluctuating in the past couple of months. It has overreached the latest All-Time-High and skyrocketed to $2,146.55. An anonymous whale just shifted over 629,000 ETH — worth over $1.3 billion at Ethereum’s current price—to the Compound contract.
What is a whale?
The term “whale” describes an individual or organization that holds a large amount of a particular cryptocurrency. There is no exact cutoff threshold for this definition, but some say a Bitcoin whale should hold at least 1,000 BTC. A whale may also be defined as a person that has enough coins or tokens to cause a significant impact on the market prices, either by buying or selling large amounts.
The recipient wallet is the smart contract for Compound, a decentralized finance (DeFi) protocol that allows traders to earn money on the crypto they save. It’s similar to putting money into an interest-bearing bank account.
The buyer stays unknown. The wallet is unlabeled, and the Ethereum blockchain is pseudonymous. It is, therefore, difficult to tell who that person (or group of people) is.
Ethereum price broke ATH
Coinciding with the whale move is Ethereum’s price surge over $2,000. Ethereum price set an all-time high of $2,152 today. The whale paid a gas fee of 0.0205 ETH to make the transaction happen, representing just over $43 at Ethereum’s current price, $2,113.
The Compound contract received 298.7 ETH, or just over $627,000, from another unknown wallet yesterday and 13,000 ETH (over $27 million) four days ago. The Compound’s current balance is 2,389 ETH, which equals just above $5 billion.
DeFi, or decentralized finance, is a loosely-connected panoply of non-custodial financial protocols, most of which are built on Ethereum.
Whales love DeFi protocols. There’s even a tracker to keep tabs on whales making waves across DeFi. UniWhales sends real-time updates on Telegram about significant transactions on decentralized exchange Uniswap.
When Beeple’s artwork sold to a whale for $69.3 million. That time identified the whale himself under the pseudonym “Metakovan.”
Ancient Bitcoin whales spark curiosity because the owners of old wallets are often presumed to know or be in some ways associated with Satoshi Nakatomo, Bitcoin’s mysterious creator.
In the past, their movements also plunged Bitcoin’s price because the value of the tokens had accrued to huge amounts, and any major selloff shocked the market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.