A prominent Ethereum investor, often dubbed a "whale" in the crypto community, is reportedly capitalizing on a profitable year, based on data analysis from blockchain intelligence service Lookonchain.
The investor initially acquired a substantial amount of Ether approximately a year ago, purchasing tokens at around $1,890 each. Recent transactions indicate profit-taking activity by the investor.
Whale's ETH Investment Strategy: From Long-Term Holding to Short-Term Profit Maximization
Initially, the whale withdrew 12,906 ETH, valued at approximately $24.39 million, from Binance and deposited them into Lido, a platform enabling users to earn interest on their holdings through liquid staking.meaning users can earn interest by staking their ETH, while receiving a liquid token representing the staked assets that can be usd elsewhere.
While this move suggests a long-term holding strategy with passive income generation, the investor's actions shifted on April 30. During a market dip, they withdrew 7,000 ETH from Lido and promptly redeposited the funds back onto Binance, indicating a move to capitalize on short-term price swings.
Analysis suggests that the profit from selling the 7,000 ETH likely exceeds $16 million, underscoring substantial gains since the initial purchase.
Ethereum experienced significant price fluctuations over the past week, dropping from around $3,250 to just above $2,850 before beginning a recovery towards its initial level. However, the cryptocurrency has since declined, now trading below $3,100.
Year-to-date, Ethereum has seen a more than 35% increase, benefiting from the broader cryptocurrency market recovery, which saw Bitcoin surge by over 50% during the same period.