Key Points
- A major Ethereum holder recently sold a significant portion of their holdings.
- Ethereum’s network growth has seen a decline, alongside a drop in its price.
A large holder of Ethereum (ETH) has recently decided to sell a considerable amount of their holdings.
Whales Moving Out?
On June 8, a significant transaction of 15,200 ETH, valued at around $56.47 million, was transferred to Kraken. The address involved in this transaction has previously received large amounts of ETH from the Ethereum Foundation and is also believed to have participated in Ethereum’s Initial Coin Offering (ICO).
Despite this recent transfer, the address still retains a balance of 41,000 ETH, which is approximately worth $151 million. This transaction may be seen by some as a sign that the holder is losing faith in Ethereum’s future, leading to a potential sell-off that could drive the price down further.
Ethereum’s Current State
At the time of writing, ETH was priced at $3,683.83, marking a 3.14% decrease in the last 24 hours. Despite this recent downturn, the overall price trend appears to be somewhat positive. However, Ethereum’s network growth has seen a significant decline, suggesting a loss of interest from new addresses and a hesitation to buy ETH at its current price. Should the price continue to drop, Ethereum may become more attractive to new investors.
Alongside the decrease in network growth, the trading velocity of ETH has also seen a significant drop. In addition, gas usage on the Ethereum network and the volume of NFT trades have both seen a decline. This decrease in activity could potentially harm both the network and the price of ETH in the long term.
