The cryptocurrency market has been in turmoil since the beginning of the year. However, it seems that the downtrend could be cooling off, given the activity of whale addresses.
Whale addresses are moving Ether tokens from exchanges and into hot and cold wallets. This is a good sign of future prices, as it indicates that the selling pressure could drop in the coming days aiding in price recovery.
30,000 ETH transferred to an unknown wallet
Whale Alert, a platform that reports on the activity of whale addresses, has reported a large number of ETH tokens transferred from the Crypto.Com exchange and into an unknown wallet address. The 30,000 ETH transferred to the wallet was worth around $86 million at the time of the transaction.
The failure to sell ETH by this wallet address comes as the price of Ethereum fails to make any notable gains. Ethereum is 40% below its all-time high of $4800 recorded in November last year. During the past 24 hours, ETH has gained by 2.3% to trade at $2934 at the time of writing, according to CoinGecko.
The performance of Ethereum has coincided with the recession witnessed across financial markets during the first quarter of this year. However, ETH has not made a fatal plunge like most altcoins. This would be attributed to notable developments within its network.
Ethereum network developments
Ethereum is switching to a proof-of-stake consensus, and this process started a few years ago. In August last year, Ethereum implemented the EIP-1559 upgrade that introduced a burning mechanism for ETH tokens.
Over 2 million ETH tokens have been burned since implementing this upgrade. The burning process has lowered the supply of ETH significantly, and this could be attributed to the token’s price gains.
Ethereum is facing stiff competition from competing networks such as Solana and Polkadot. However, the network remains the king of decentralized finance and non-fungible tokens (NFTs). Data from DeFiLlama shows that Ethereum’s total value locked (TVL) stands at $114.97 billion. This is a giant share, given that the second-largest network by TVL is Terra, with $26.45 billion.
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