Mysterious Crypto Trader Leverages Stablecoins to Buy $12 Million Worth of ETH

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As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by this recent move by the mysterious cryptocurrency trader. The aggressive accumulation of Ethereum amidst market volatility and liquidation losses is a strategy that I’ve seen played out in traditional markets as well, albeit with more caution due to the inherent risks in the crypto space.

An enigmatic trader of digital currencies has made a significant investment in Ethereum‘s Ether, the second-largest cryptocurrency by market value, taking out approximately $12 million worth of stablecoins since August 11 to amass more than 4,459 Ether.

As a researcher, I stumbled upon an intriguing observation made by the on-chain analysis service Lookonchain. They pointed out, via their X (previously Twitter) microblog, that a trader had experienced a liquidation worth over $8 million in tokenized ETH during this month’s market downturn, with these transactions taking place primarily through decentralized finance (DeFi) exchanges.

The trader is currently using a mix of 6.6 million DAI, 2.7 million USDT, and 2.5 million USDC (which are all stablecoins) as collateral to purchase approximately $12 million in ETH at an average cost of around $2,646 per ETH.

A whale that sold 2,890 wstETH (equivalent to approximately $8.06 million) during the market crash on August 5 has resumed buying and holding ETH again!— Lookonchain (@lookonchain) August 13, 2024

The trade comes shortly after another cryptocurrency trader paid a whopping $92,000 to move around $2,300 worth of Ethereum on the blockchain, despite the average Ethereum transaction fee currently being of around $2.1.

To put it simply, Ethereum has been lagging behind Bitcoin in terms of performance. The ETH/BTC ratio, which measures the comparative strength between these two cryptocurrencies, has dropped to its lowest point since April 2021, reaching a concerning 0.044.

Based on information from top institutional digital asset data provider CCData, Ethereum (ETH) has consistently lagged behind Bitcoin in performance. On the other hand, Ethereum’s rival Solana (SOL) has defied this trend, as the SOL/ETH ratio has been steadily increasing and is now close to a new record high.

As a seasoned cryptocurrency investor with years of experience under my belt, I’ve witnessed countless market fluctuations and trends. However, the current performance of Ethereum (ETH) compared to Bitcoin (BTC) has caught my attention. Over the past few months, Ethereum has significantly underperformed against its leading counterpart, with the ETH/BTC ratio reaching its lowest level since April 2021, at just 0.044. This is a stark contrast to the bullish momentum that Ethereum had been experiencing in the past.— CCData (@CCData_io) August 6, 2024

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2024-08-15 01:02