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This week we delve into the record-breaking amount of value staked in Ethereum for network security. Furthermore, we investigate the movements of large inactive Ethereum holders within the ecosystem.
Network Fees — Sum of total fees spent to use a particular blockchain. This tracks the willingness to spend and demand to use Bitcoin or Ether
- BTC fees seem to have stabilized after a downward trend since their peak in May
Exchanges Netflows — The net amount of inflows minus outflows of a specific crypto-asset going in/out of centralized exchanges
- Ether recorded the highest inflows into CEXs in the past two months
Whale Moves & Ethereum Surges
Cryptocurrency markets experienced a surge recently when XRP (Ripple) was deemed to not be classified as a security in a legal battle with the SEC. As a result, there was a notable increase in buying activity in the market, leading to a sharp rise in the prices of many crypto assets. The increased market confidence also contributed to a new milestone for ETHÂ staking.
Source: IntoTheBlock’s Ethereum Indicators
The Ethereum network reached a new peak in terms of the USD value of ETH being used to secure it.
- The Ethereum network is currently being secured by a staggering $52.3 billion, marking the highest value it has ever reached.
- As the value of ETH used to secure the network increases, it becomes increasingly challenging for any potential attacker to gain control over it.
- At present, the staking ratio, which represents the percentage of ETH being locked to ensure the network’s security, stands at 17.78%.
This week we also saw an old inactive Ethereum wallet become active after almost 9 years of inactivity. This particular wallet had participated in the project’s initial coin offering (ICO), where the Ethereum Foundation distributed 60 million Ether (ETH) tokens to early backers and supporters who contributed. The ICO raised $18.3 million, which was utilized to finance the development of the Ethereum blockchain and its native cryptocurrency, Ether.
Source: IntoTheBlock’s Ethereum Indicators
The inactive Ethereum ICO whale transferred a sum of $116 million worth of ETH to the Kraken exchange.
- The entire balance of 61,216 ETH from a wallet address that held pre-mined Ethereum was transferred to an address linked to the Kraken cryptocurrency exchange.
- The wallet was involved in Ethereum’s public crowdsale back in 2014, where the owner obtained their tokens at an initial coin offering (ICO) price of around $0.31 per ETH.
- This transfer could signal an intent to either sell the coins or stake them.
Source: IntoTheBlock’s Ethereum Indicators
The daily average duration that coins were held before being transacted reached a monthly peak on the day when the whale transferred the tokens into Kraken.
- This metric calculates the average duration for which coins have been held before being transacted on a specific day, providing valuable information about the characteristics of traders currently engaging in coin transactions.
- In the majority of instances, when coins are moved to a centralized exchange, it is generally assumed that the intention is to sell those coins.
Throughout this year, there have been multiple instances where whales have transferred funds that had been inactive for years, and while it remains unexpected, it is not the first occurrence. The prosperous outcome, back in 2015, of Ethereum’s initial coin offering (ICO) set a precedent for numerous blockchain projects to raise funds via token sales, thereby catalyzing the proliferation of ICOs in subsequent years.
Whale Moves & Ethereum Surges was originally published in IntoTheBlock on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.