Ethereum News Today: Ethereum Sees 6.5% Gain Despite $518 Million Outflow From HTX

A recent transfer of 50,600 Ethereum (ETH) valued at approximately $181 million was moved from HTX, where Justin Sun serves as an advisor, to Binance. This transfer is part of a larger trend of 160,600 ETH, worth around $518 million, that has been moved from HTX to Binance over the past week. The transactions follow a consistent pattern: Ethereum is redeemed from the DeFi platform Aave using HTX Recovery wallet, routed to HTX’s hot wallet, and then transferred to Binance. This pattern has been ongoing, sparking speculation about potential market actions or liquidity events.

Market observers have noted an interesting mechanism that the involved entities have been using to complete transfers. Blockchain analyst EmberCN has observed a pattern where Ethereum is first redeemed from Aave by HTX Recovery wallet, followed by a transfer to HTX hot wallet, and then a transfer to Binance. This mechanism has been consistent, with the latest transfer of 50,600 ETH following the same pattern. The transfer of Ethereum from HTX to Binance coincides with significant accumulation by whales and institutional players. For instance, BitMine Immersion Technologies purchased 300,657 ETH, valued at $1.13 billion, barely three days ago. SharpLink also completed the purchase of 10,000 ETH in exchange for $25.7 million with the Ethereum Foundation. These accumulations suggest strong interest in Ethereum despite the outflows from HTX.

Despite the outflows from HTX, investors have demonstrated confidence in Ethereum’s prospects. There is an aggressive accumulation of the largest altcoin by market capitalization amongst these investors. At the time of the purchase, 1 unit of ETH had a market price of $3,461.89. Fast forward to the present day, the ETH price has moved higher, trading at $3,786.10 after gaining 6.5% within the last 24 hours. This values the purchase of the Bitcoin-focused technology company at $1.13 billion. SharpLink also completed the purchase of 10,000 ETH in exchange for $25.7 million with the Ethereum Foundation. Ethereum’s performance this past week is worth applauding, mainly because the altcoin has struggled for several months to cross past $3,000. All of a sudden, it is nearing $4,000 and may even hit a more notable high this new week. Its market capitalization looks good at $455.84 billion, gradually inching towards the key $500 billion level. ETH’s 24-hour trading volume has reached $34.77 billion, marking a 3.54% increase. The large-scale transfer has not stopped the coin from maintaining its strength.

In addition to the Ethereum movements, HTX redeemed 5,182 Wrapped Bitcoin (WBTC) worth about $500 million from the WBTC protocol. This redemption is the sixth-largest in WBTC history and the biggest in nearly two years. The move raised eyebrows as HTX is not known for trading WBTC and showed 0 volume in the last 24 hours. The wallet that redeemed the WBTC is not listed in HTX’s proof-of-reserves, and the redeemed WBTC equals over 25% of all Bitcoin supposedly held on HTX. This has prompted questions about hidden reserves or off-balance-sheet asset management. The WBTC redemption highlights a broader pattern tied to Sun’s crypto empire. Nearly half of all Bitcoin held at HTX is in Bitcoin-on-Tron, a Sun-controlled token lacking proof-of-reserves. Sun’s USDD stablecoin recently removed 12,000 BTC from its reserves with no DAO oversight. HTX also continued receiving hundreds of BTC from Binance even after the WBTC redemption. These actions have raised concerns about transparency and accountability within Sun’s operations.