Ethereum’s Largest Whale Increases Holdings Ahead of Shanghai Upgrade
On-chain data on Feb. 19 revealed that a whale has been slowly accumulating Ethereum (ETH) over the past 34 days. The whale, identified only as “0xB79c,” has been buying ETH regardless of the spot price from Binance and Coinbase, and has accumulated over 30,000 ETH worth more than $50.9 million.
A whale has been slowly accumulating their ethereum (ETH) bag ahead of the Shanghai Upgrade.https://t.co/6we6nC318d
— crypto.news (@itscrypto_news) February 19, 2023
The latest purchase by the whale was earlier today when they bought 1,362.15226ETH. In the last four days, the whale has been buying over 1,000 ETH in bulk, increasing their holdings. However, the motivation for the whale’s steady ETH purchase remains unclear.
Brace For Potential Price Volatility
Ethereum is a leading smart contracting platform and home to decentralized finance (DeFi), non-fungible tokens (NFTs), and the metaverse. The platform has seen the launch of popular dApps like Blur and OpenSea, two of the world’s largest NFT marketplaces, and Uniswap, a decentralized exchange that allows users to swap tokens without an intermediary.
In the short term, ETH holders expect prices to increase with the activation of the Shanghai Upgrade on Ethereum. The upgrade will gradually unlock billions worth of ETH from the Beacon Chain, potentially leading to a contraction of prices as some holders exit the market. However, some of these coins could flow to liquid staking providers like Lido DAO and Rocket Pool, taking more coins from circulation and possibly supporting prices.
Ethereum’s EIP-1559 Fee Model
Ethereum also changed its fee auction model through EIP-1559, which introduced a base fee and fee-burning model. As a result, hundreds of millions of ETH have been destroyed and will not be recovered. Activities from Uniswap and OpenSea contribute to more coins being burned, making ETH gradually deflationary. Proponents believe that ETH will become ultrasound money and a choice store-of-value asset, better than bitcoin (BTC) in the coming years.
The whale’s accumulation of ETH is an indication that more investors are seeing the potential of the platform and believe that it is a valuable asset to hold. As the platform continues to grow, the demand for ETH is likely to increase, driving up prices and further solidifying its position as a leading smart contracting platform.
