Crypto News

Ethereum’s Derivatives Market Thrives As Layer-2s Lower Costs, Whales Unload Large Holdings

Ethereum’s derivatives market has seen significant growth, thanks to the rise of Layer-2 solutions, which have drastically reduced transaction fees that once held back the sector.

This cost reduction has paved the way for a surge in derivatives protocols, driving impressive gains in the market since the beginning of the year.

In the midst of this growth, two long-term Ethereum holders made substantial moves, unloading a total of 33,701 ETH (valued at $89.72 million) as the price of ETH surged by 13.75% in just 24 hours.

The first whale, “0xB8c,” a known Ethereum ICO participant, sent 25,000 ETH (worth $65.67 million) to Kraken at around $2,627 per ETH, leaving behind 64,450 ETH (valued at $181.2 million).

The second whale, “0x0c1,” made a rare move after 8.75 years of dormancy, selling 8,701 ETH for 24.05 million USDC at an average price of $2,764. This whale left behind just 2,304 ETH, locking in a $30.48 million profit, or a 689x return on their initial investment.

In another remarkable move, a third Ethereum whale, who had been dormant for over eight years, began selling off their 12,001 ETH (worth $34.1 million). This whale originally withdrew the ETH from ShapeShift in early 2016 for just $8.58 per ETH, meaning they stand to make an impressive $34 million profit today—an incredible 330x return.

Ethereum Spot ETFs Recorded Notable Inflows 

Amid these whale transactions, Ethereum spot ETFs saw notable inflows, with $52.29 million flowing into the space, further solidifying Ethereum’s growing presence in the institutional investment arena. This momentum is fueling optimism around Ethereum’s future, especially with Layer-2 scaling solutions driving the next phase of growth.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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