According to Golden Finance, the latest monitoring data from on-chain analyst Ai Auntie (@ai_9684xtpa) shows that the whale who once cycled long 8,613 ETH on May 16th and eventually suffered a loss made another move two hours ago, adding 1,341 ETH. Based on the current price, The value of this additional position is approximately 3.52 million US dollars.
Looking back on the trading journey of this giant whale, its circular long operation on May 16th ended in a loss, but this did not shake its confidence in Ethereum (ETH). Over the past five days, this whale has cumulatively purchased 5,002 ETH on the chain, with a total value of approximately 13.05 million US dollars and an average cost of 2,580 US dollars. It is worth noting that all the ETH currently held by this whale has been deposited into the decentralized lending platform Aave, where it lends out a portion of USDT as margin. This operation mode is quite common in the cryptocurrency market. The whale acquires liquidity by staking assets, maintaining its holdings of ETH. It can also obtain funds for other investments or to meet capital demands.
This series of operations by the giant whale has drawn extensive attention and discussion from the market. On the one hand, despite suffering losses, the giant whale continued to increase its holdings, demonstrating its firm optimism about the long-term value of ETH. From a fundamental perspective, Ethereum is constantly promoting network upgrades. For instance, the gradual implementation of Ethereum 2.0 will enhance network performance from aspects such as consensus mechanisms and scalability, reduce transaction costs, and strengthen Ethereum’s competitiveness in areas like smart contracts and decentralized finance (DeFi). These long-term favorable factors might be the key reasons for the continuous increase in holdings by Giant Whales.
On the other hand, the operation of the giant whale depositing ETH into Aave and lending out USDT also reflects its demand for capital liquidity and its response strategy to short-term market fluctuations. Against the backdrop of high volatility in the cryptocurrency market, through this approach, whales can flexibly adjust their capital allocation, obtaining funds to participate in other transactions or deal with potential risks without giving up their ETH holdings.
From the perspective of market impact, the large-scale buying and holding operations of whales may have multiple effects on the ETH market. In the short term, the continuous buying behavior of giant whales will increase the market demand for ETH, to a certain extent, pushing up the price of ETH and attracting more investors to pay attention and follow suit to buy.
In the long term, the holding confidence and capital operation strategies of the giant whales will also affect the overall market expectations and investment sentiment towards ETH. However, the cryptocurrency market is complex and volatile, with numerous factors influencing price trends. Besides the trading behavior of whales, macroeconomic conditions, changes in regulatory policies, fluctuations in market sentiment, and competition from other cryptocurrencies may all have a significant impact on the price of ETH.
Subsequently, whether this whale will continue to increase its holdings of ETH, how its staking and lending operations on the Aave platform will affect its capital situation and investment strategy, and where the ETH price will go under the combined influence of the whale’s operations and other market factors have all become the focus of close attention for cryptocurrency investors and practitioners.
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