Ethereum has seen a significant surge in its market price recently, reaching a one-month high. Amid this uptick, an Ethereum whale has made headlines for their bold strategy.
Strategic Accumulation Amid Rising Prices
According to Lookonchain, an anonymous whale has been actively increasing their Ethereum holdings through the Spark platform’s revolving loan feature. This DeFi product allows users to borrow stablecoins like USDC or DAI against their cryptocurrency holdings.
The whale has withdrawn 39,900 ETH (worth approximately $99.5 million) from major exchanges like Binance, Bybit, OKEx, and Bitfinex. They have used the flexibility of revolving loans to boost their Ethereum position.
Continuous Strategy, Not a One-Time Event
Lookonchain’s analysis reveals that these withdrawals are part of a continuous strategy rather than an isolated event. Since the start of the month, the whale has consistently pulled out ETH, averaging a withdrawal price of $2,492. They have secured about 56.8 million DAI in loans from the Spark platform so far.
Optimism Surrounding Ethereum’s Potential Growth
This bold strategy highlights the optimism surrounding Ethereum’s potential growth, particularly in anticipation of the upcoming altcoin bull run and the growing interest in Ethereum-based investment products like spot exchange-traded funds (ETFs).
Spotlight on Ethereum Spot ETFs
While the SEC has yet to provide an update on the filed applications for spot Ethereum ETFs, asset manager Franklin Templeton has recently joined the queue. This follows submissions by other prominent asset managers, including Hashdex, BlackRock, Fidelity, Ark, 21Shares, Grayscale, VanEck, Invesco, and Galaxy.
Ethereum’s Positive Momentum
These developments come as Ethereum has maintained a positive momentum, closely tracking Bitcoin’s performance. The asset has seen a surge of over 10% in the past week and an additional nearly 1% increase in the past 24 hours. As of this writing, Ethereum is trading at $2,614.
