What happened: An Ethereum (CRYPTO: ETH) whale sent $56,847,363 worth of Ethereum off Gemini today.
The ETH address associated with this transaction has been identified as:
Why it matters: Whales typically send cryptocurrency from exchanges when planning to hold their investments for an extended period of time. Storing large amounts of money on an exchange presents an additional risk of theft, as exchange wallets are the most sought-after target for cryptocurrency hackers.
Ethereum whales that run their own validator nodes (costing 32 ETH each) must send their Ether to the Ethereum 2.0 beacon chain, which is then locked up until the launch of Ethereum 2.0 in 2022.
According to Glassnode, only 11.99% of the total supply remains liquid across all centralized exchanges.
The removal of ETH from an exchange reduces potential sell side pressure, allowing the price of Ether to increase more easily.
See Also: Best Crypto Apps 2021 and Best Crypto Portfolio Trackers
Price Action: Ethereum is down -4% in the past 24 hours.
See Also: How To Buy Ethereum
Public Blockchain data sourced from Whale Alerts Twitter.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.