After five years, a dormant ether (ETH) wallet was activated, transferring approximately $90 million worth of ETH to the cryptocurrency exchange Kraken. This movement was detected early Tuesday by the on-chain analytics tool Lookonchain. The wallet, classified as a “whale” due to its large holdings, deposited 39,260 ether into Kraken. It is important to know that the term “whale” refers to entities holding substantial amounts of cryptocurrency.
Historical transactions and market impact
The whale’s address initially received 47,260 ether in 2017, valued at over $11 million at that time. Analysis from Arkham Intelligence reveals that past transactions from this address were not linked to the cold storage wallets of any major exchange. However, one transaction may have connections to an address associated with Cumberland, a prominent trading firm, as indicated by labeling on the data tool Arkham. The movement of such a large volume of ETH to an exchange like Kraken suggests potential scenarios: the holder might exchange ETH for stablecoins, adding selling pressure to the market or pivot to other cryptocurrencies.
Kraken’s market depth
At the time of the transaction, Kraken’s market depth for ether trading pairs exceeded $5 million. In this context, a buy or sell order of this magnitude could influence the market price by at least 2%. This substantial transfer raises questions about the holder’s intentions and the potential impact on the ether market.
Overall, this dormant holder’s transfer of a large amount of ETH to Kraken has attracted attention within the cryptocurrency community. It also underscores the influence of major players in the digital asset markets.