Blockchain monitor Whale Alert has sent more than 1.25 million from an unknown wallet to the Kraken exchange Ethereum he reported that he had been transferred. In this article we will consider the behind-the-scenes of the recorded process.
The Reason Behind the Ethereum Transfer
According to the transaction page, an anonymous wallet is worth $ 6 billion Ethereumhe transferred the to the Kraken exchange. 100% of funds when transactions on the Etherscan blockchain explorer are checked Kraken it was processed from a cold wallet. The large volume is explained by the increased inflows of funds since the beginning of September.
Users note the strong upward trend in the market and Of Ethereum due to its deflationary nature, it constantly withdraws its funds from stock exchanges. The exchange will transfer funds to users by market makers in order to ensure sufficient liquidity. The tracked total amounts to approximately 40% of the current daily trading volume, that is, if these funds are to be used for sales Ethereum it should be expected that its price will drop significantly.
Exchanges use cold wallets to securely store users’ assets without exposing them to the risk of being hacked or stolen. Some of the funds are located in the hot wallet of the exchange for immediate on-demand use. Cold wallets provide full security by restricting access to funds due to the fact that they are constantly stored on a device that is not connected to the network.
The Price of Ethereum
The largest altcoin Ethereum continues its course at the level of 4.700 dollars. ETH, it had reached an all-time high 5 days earlier, touching $4,859. The second most popular crypto currency, according to experts’ forecasts, wants to sweep the $ 5,000 level.
In addition, expert analysts point to $ 20,000 levels in their long-term expectations. The Ethereum price is trading at the 4.726 dollar levels as of the time of writing of this article.