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According to on-chain data provider Lookonchain, a whale or bigholder has moved 15,000 ETH worth $25.16 million from San Francisco-based OKX crypto exchange.
The whale has deposited part of its withdrawals — about 10,150 ETH worth $17 million — in DeFi via the Compound and Aave protocols. He or she then borrowed $10 million worth of USDC stablecoin, which was transferred to Circle.
Although the whale’s actions were made for a variety of reasons, one particular motive may have been to avoid the current market volatility while also wanting to hold the cryptocurrency in question for much longer.
At the time of publication, ETH was down 1.87% to $1,682.
Analysts suggest that the withdrawal of cryptocurrencies from exchanges to put them in cold storage for security or in DeFi to generate returns could indicate that investors are willing to hold their cryptocurrency for a long time.
Users deposit digital assets in the DeFi protocols “pools of liquidity”, which become funds that could be lent out.
This is often based on the belief that the market could go higher. Also, the whale was able to access liquidity by borrowing 10 million USDC stablecoin without having to sell its assets.
Arbitrage, in which an asset is bought in one market and immediately sold in another market at a higher price, is one of the most obvious justifications for borrowing.
Since the start of the year, ETH, Ethereum’s native token, is up more than 40% to hit a seven-month high at nearly $1,750.
According to on-chain analytics firm Santiment, Ethereum’s price surge follows determination from shark and whale addresses, which have accumulated 1.88 million ETH since November 2022.
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