In a recent development in the cryptocurrency market, a significant Ethereum (ETH) whale investor, who had remained dormant for a year, has re-emerged to start selling off their ETH holdings. This comes as the leading altcoin, Ethereum, experiences a loss in momentum.
Ethereum Whale Activity Uncovered
Blockchain data tracker Lookonchain has provided valuable insights into the activity of this mysterious Ethereum whale. According to their data, this investor has spent the past 12 months in dormancy, only to awaken recently to start selling their ETH holdings through decentralized exchange platforms (DEX). The move has raised eyebrows within the cryptocurrency community, given the current state of the Ethereum market.
In addition to the Ethereum whale’s activity, Lookonchain also pointed out some intriguing activity related to Chainlink (LINK) deposits on the Binance exchange. According to their data, noncirculating supply wallets have deposited a significant amount of Chainlink, approximately 8.3 million LINK tokens, which are valued at approximately $119 million at the time of writing. This deposit activity has been recurring every three months since August 26, 2022.
What stands out is that most of these deposits seem to occur at the bottom of the price curve, with the price of Chainlink subsequently experiencing an upward trend. Currently, Chainlink is trading at $14.08 per token.
Bonk (BONK) memecoin trader’s dramatic turnaround
Shifting focus to the Solana-based meme cryptocurrency, Bonk (BONK), Lookonchain uncovered a remarkable story involving a savvy trader. On November 1st, this trader experienced a significant loss of $46,000. However, by December 15th, the same trader managed to turn the tables and make an astounding $4.4 million from trading this dog-themed meme asset.
This trader possesses two wallets, and over the course of a year, they made several strategic moves with their Bonk holdings. They withdrew 334.5 billion BONK tokens, equivalent to $218,000, from the cryptocurrency exchange MEXC. Subsequently, they purchased 32.18 billion BONK tokens worth $41,000 from a decentralized exchange. The trader then deposited 204.2 billion BONK tokens valued at $80,000 back into MEXC, leaving them with 172.5 billion BONK tokens, worth $132,000, on November 1st.
Remarkably, despite the earlier loss of $46,000, the trader experienced a meteoric rise in fortunes, ultimately raking in a staggering $4.4 million from their Bonk trading activities.
The reawakening of the Ethereum whale
The return of the Ethereum whale to the cryptocurrency scene has raised questions about their motives and the state of the Ethereum market. Ethereum, often considered the leading altcoin, has been facing challenges in recent times, with declining momentum and increased competition from other blockchain networks.
As this whale begins to sell off their ETH holdings, it could potentially impact the price and sentiment surrounding Ethereum. Traders and investors are closely watching these developments to gauge the market’s reaction.
The consistent deposit of Chainlink tokens into Binance by noncirculating supply wallets has raised eyebrows among crypto enthusiasts. The timing of these deposits, often coinciding with price bottoms, has led to speculation about the motives behind these transactions. While the cryptocurrency market is known for its unpredictability, such patterns can attract attention and further scrutiny.
The story of the Bonk (BONK) memecoin trader is a testament to the volatility and potential gains in the cryptocurrency market. Despite a substantial loss, this trader’s ability to strategically navigate the market resulted in an extraordinary $4.4 million profit in a matter of weeks.
This remarkable turnaround serves as a reminder of the immense opportunities and risks associated with trading cryptocurrencies. It also highlights the importance of thorough research, strategy, and risk management in the crypto space.