Ethereum’s recent surge in market price has caught the attention of investors, and one particular whale has been taking advantage of this rally. According to on-chain analytics platform Lookonchain, an anonymous whale has been strategically accumulating Ethereum by utilizing the Spark platform’s revolving loan feature. This decentralized finance (DeFi) product allows users to borrow stablecoins against their cryptocurrency holdings.
The whale has withdrawn a whopping 39,900 ETH worth approximately $99.5 million from major exchanges such as Binance, Bybit, OKEx, and Bitfinex. By leveraging the flexibility of revolving loans, they have been able to boost their Ethereum position significantly. This withdrawal strategy has been ongoing, with the whale consistently pulling out ETH since the beginning of the month, averaging a withdrawal price of $2,492. Furthermore, they have secured around 56.8 million DAI in loans from the Spark platform so far.
This bold strategy reflects optimism regarding Ethereum’s potential growth, particularly in anticipation of the upcoming altcoin bull run and the increasing interest in Ethereum-based investment products like spot exchange-traded funds (ETFs). While the US Securities and Exchange Commission (SEC) is yet to provide updates on the spot Ethereum ETF applications, asset manager Franklin Templeton has recently joined the queue and applied for authorization, becoming the eighth firm in the cryptocurrency sector to do so.
These developments coincide with Ethereum’s positive momentum, closely following Bitcoin’s performance. Ethereum has experienced over a 10% surge in the past week, maintaining an upward trend with an additional nearly 1% increase in the past 24 hours. As a result, Ethereum’s current trading value stands at $2,614.
It is important to note that this article is for educational purposes only and does not constitute financial advice. Investors are cautioned to conduct their own research and analysis before making any investment decisions.