A dormant ethereum (ETH) whale that participated in the initial coin offering (ICO) in 2014 has resurfaced, encouragingly staking millions of coins.
Data from Lookonchain reveals that the whale, which has been inactive for years, recently created a new contract and staked 4,032 ETH, worth approximately $7.4 million, backing Ethereum.
During the ICO in July 2014, the whale received 60,000 ETH during the pre-sale.
For some in the crypto space, their decision to stake coins is a vote of confidence in Ethereum’s long-term potential.
While ETH prices remain stable, its activity could influence demand as investors tend to watch and react to the decisions the whales make. In essence, staking locks in the coins, effectively removing them from circulation, a net benefit to the bulls.
Apart from the price action, this development also suggests a possible stabilization of the volatile crypto market, with investors gaining more confidence in the longevity of digital assets.
In recent days, ETH has been under pressure, down from the more than $2,100 it registered at the end of May. However, prices have since recovered, floating higher after falling to last week’s lows.
With Ethereum operating entirely as a proof-of-stake network, there has been an increase in network activity, especially after the recent Shapella hard fork in April 2023.
To date, investors have staked more than 21.9 million ETH worth more than $40 billion, according to Etherscan. data.
Users withdrawing ETH from exchanges
Meanwhile, Glassnode, an on-chain analytics provider, is also reporting a notable decline in the ETH balance on exchanges.
Currently, ETH on centralized exchanges is at a 5-year low of 17,945,575,311 ETH, indicating a significant outflow from exchanges, possibly to staking providers like Lido Finance, or non-custodial wallets like MetaMask.
This change in the ETH balance could indicate the growing popularity of staking and the desire among investors to earn returns on their holdings. Added to that, this shows the drive for self-custody and decentralization.
As Ethereum, the second most popular crypto project globally, continues to evolve and attract renewed attention, it remains to be seen how staking activity will affect ETH supply and possibly prices.
