• 26 May, 2024
News

Ethereum Holder Transfers $5.8M in ETH After Nine Years of Inactivity

An early investor in Ethereum, inactive for almost nine years, made headlines by transferring a substantial amount of cryptocurrency. According to data from Lookonchain, an onchain data tracking platform, the transfer involved 1,960 ETH, which, at the current market value, amounted to $5.8 million. The investor initially acquired the Ethereum during its initial coin offering, paying just 31 cents per token.

The reasons behind the transfer remain unclear. However, the considerable gain of over 950,000 percent suggests profit realization could be a motive. Such transactions have historically led to discussions about market impact, as similar moves in the past were often followed by a decrease in Ethereum’s price.

Additionally, the action might indicate a strategy shift, with the investor possibly diversifying their portfolio into other cryptocurrencies. This kind of strategic reallocation can reflect broader trends in investor behavior within the crypto market.

Previous instances of reactivating dormant Ethereum accounts have been noted this year. Notably, on March 24, an entire 2,000 ETH acquired during the ICO was moved. Another significant transaction occurred on February 20, with 1,732 ETH being transferred to the cryptocurrency exchange Kraken.

However, data from Santiment observed that spikes in the movement of ETH that have been dormant for over five years often lead to price adjustments. This pattern underscores the potential influence of large, individual transactions on general market sentiments.

Source: Santiment

As of press time, Ethereum trades around $3.044, up by 3% in the past 24 hours. The cryptocurrency is currently experiencing a recovery phase after a drop of nearly 10% last month and a weekly drop of 5%. The futures market has shown a notable shift in sentiment, with an increase in traders betting against the coin, a move that could further affect its price stability.

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