Ethereum whales made huge bets on the second-largest cryptocurrency by market capitalization after withdrawing and staking funds from leading crypto exchange Binance, then borrowed with their holdings to buy more.
According to data first shared by on-chain analytics service Lookonchain, the Ethereum whale continued to accumulate funds since the beginning of the month, withdrawing 6,030 ETH tokens worth more than $18 million from leading crypto exchange Binance, and finally could hold 10,758 ETH tokens. Their wallets are worth more than $32.14 million.
The whales then exchanged their ETH for Lido Staked ETH (stETH), a liquid derivative token representing Ether staked on Lido, a decentralized liquid staking protocol. The tokens represent his ETH, earned by validating transactions on the network, and are liquid for use in other decentralized finance protocols.
Whale then deposited his stETH on the decentralized lending protocol Aave to borrow $28.5 million in stablecoins, which he used to buy more ETH, effectively leveraging his position in the second-largest cryptocurrency.
Whale bets on ETH are still up about 30% since the beginning of the year, even though the cryptocurrency has lost nearly 20% of its value over the past 30 days and is currently trading below the $3,000 mark. This is in response to the current situation.
As reported by CryptoGlobe, major ETH whales have taken advantage of a successful year to cash in as they recently started reaping profits after purchasing large amounts of ETH at around $1,890 per token.
Whale first withdrew 12,906 ETH, worth about $24.39 million at the time, from Binance, a major cryptocurrency exchange. The tokens were then deposited into Lido, from which Whale then withdrew 7,000 ETH, redeployed the funds to Binance, and sold them.
Featured image via Pixabay.
