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Ethereum Whale Dumps $228M ETH on Bitfinex Before Market Crash

Coin WorldTuesday, Feb 4, 2025 8:01 am ET

1min read

Ethereum Whale Moves $228.6 Million in ETH to Bitfinex Before Market Crash

An anonymous Ethereum (ETH) whale has moved a significant amount of ETH to crypto exchange Bitfinex just before the market's recent correction. According to blockchain tracking firm Lookonchain, the whale transferred 77,736 ETH, valued at $228.6 million at the time, to Bitfinex. This transaction occurred six years after the whale initially withdrew the same amount from the exchange in 2019 when the price per ETH was around $153.

Meanwhile, Lookonchain reports that some crypto whales are buying Ethereum's dip, including an entity known as "7 Siblings." The entity bought 5,382 ETH ($14.5 million) on Monday, adding to its previous purchases. In August, "7 Siblings" accumulated $129 million worth of ETH near the $2,300 level, showcasing a strategic approach to buying during market dips.

Ethereum Faces Supply Challenges and Investor Skepticism as Solana Emerges Stronger

Ethereum is grappling with supply challenges and investor skepticism as its market dominance declines and competitors like Solana gain traction. Despite the anticipated benefits from its transition to proof-of-stake, ETH has seen a substantial decline in market dominance, raising concerns about its price trajectory.

Ethereum's supply growth rate is nearing 0%, indicating that the anticipated deflationary effects from the Merge have plateaued. The peak supply reduction was recorded at -0.37% in April 2024. As on-chain activity wanes, falling gas fees result in diminished ETH burns, exacerbating the supply issue.

Transaction fees on the Ethereum network have been declining, with a significant drop from over $15 in March 2024 to under $5 as activity slowed. This decrease in transaction fees reflects a broader decline in the network's activity levels, implying a shift in user engagement and interest in Ethereum compared to its competitors.

On-chain analysis reveals that Ethereum's long-term holders have substantially reduced their investments since the Merge. While Ethereum holders retreat, Bitcoin wallets with similar large balances have increased substantially, indicating a contrasting sentiment

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