A former Ethereum investor moved ETH to a value of $14.7 million today after nearly 8 years. A common hypothesis is that the whale probably remembered its password now.
Ethereum ICO investor transfers $14.7 million to a new wallet
According to the Lookonchain report, a giant whale that has been dormant for 8 years transferred 8,000 ETH (about $14.7 million) to a new address today. The giant whale was a participant in the 2014 Ethereum ICO. During this period, he bought 8,000 ETH during the early days of Ethereum.
The still whale raises numerous questions about the reasons behind this sudden activity. The whale’s next move is catching the attention of the crypto community and market analysts.
An Ethereum ICO participant who has been dormant for 8 years woke up today.
He transferred all 8000 $ETH($14.7M) to a new address.https://t.co/1griKB9Te9 pic.twitter.com/1bvQh3zsqY
— Lookonchain (@lookonchain) May 28, 2023
The important ETH transfer of the day sparked a wide variety of theories and conjectures among enthusiasts. A common hypothesis is that the participant is an early adopter or a passionate cryptocurrency enthusiast who has forgotten about their holdings by now. Considering Ethereum’s phenomenal rise in value over the past few years, this explanation makes sense.
Others suggest that the whale wants to diversify its portfolio with new altcoins.
Is the whale chasing new prey?
Layer two (L2) solutions under Ethereum sustainably gained traction as a way to address the scalability of the network and high transaction fees. As a result, L2 data fees on Ethereum have reached the ATH level, according to data from The Block.
L2 data charges refer to the costs associated with data transfer and transaction processing in L2 networks based on the Ethereum L1 Mainnet. As more users and applications use L2 solutions, the demand for off-chain transactions processing is increasing, reflecting the increasing usage and demand for these scaling solutions.
If the whale is going to have a new investment strategy, it will probably choose the Ethereum network again for it. Currently, all of Ethereum’s prominent projects are in the Tier-2 category, including Arbitrum and Optimism.
Ethereum falls back in TVL competition
The decline in ETH has also spread to the overall Total Locked Value (TVL) performance of the market. While DefiLlama showed an increase in the metric, it fell far short of its main competitors at $13.27 million.
TVL is widely used as a liquidity pool for staking on a Blockchain. When the metric increases, it means that the health of a protocol is excellent. But when it crashes, it opens threats to the protocol. Thus, it serves as an indicator of hungry liquidity.
zkSync Era is ahead of Polygon zkEVM with a TLV of $127.63 million. In terms of optimism, the situation was completely different. For Optimism, it seems to have provided some sort of stability at $889.36 million. As with data charges, Arbiturm took the top spot with a TVL of $2.34 billion.
Currently, optimistic rollups seem to be stealing the hearts of investors. Therefore, the ZK cohort would have to do more to influence and develop its market share. Meanwhile, cryptocoin.comAs we reported, the date for the next big Ethereum update has been announced.
