Ethereum

Voyager sells ETH; should short-term Ethereum holders be worried? 

Published

2 years ago

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Source: Unsplash

  • Voyager currently holds nearly 148,774 ETH, over $57 million worth of SHIB, and 1.44 million LINK.
  • ETH accumulation increased and metrics remained bullish. 

Twitter account Lookonchain revealed an interesting transaction that happened on 5 March 2023. As per the tweet, Voyager continued to dump its holdings as it sold 1,449 Ethereum [ETH], worth over $2 million, via Wintermute. In exchange, Voyager received 2.25 million USDC. 

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After this massive transaction, Voyager holds nearly 148,774 ETH, worth $233.5 million, over $57 million worth of Shiba Inu [SHIB], and 1.44 million Chainlink [LINK], among others.

This episode happened while the SEC objected to the deal between Binance and Voyager, saying the regulator had essentially asked to “stop everybody in their tracks” without explaining how to address its concerns.

Should Ethereum HODLers be worried?

Though the sell-off brought along with it the possibility of a further dump, the chances of that happening were thin. Glassnode’s data revealed that the number of addresses with more than 1 ETH reached a one-month high of 1,743,911 on 5 March.

The increase in this metric suggested that the market’s confidence in

ETH was high as more investors trusted the token. 

As per Santiment, ETH’s total supply held by top addresses also increased last month. As accumulation increased, the possibility of a dump was reduced.

Additionally, it was interesting to see a hike in the supply held by top non-exchange addresses over the last few weeks, while the same metric for top exchange addresses declined slightly.

Not only this, but Ethereum’s exchange supply recently fell to a five-year low. 

Source: Santiment

The future looks secure

As the date of the much-awaited Shanghai upgrade approaches, several other metrics also turned in ETH’s favor, giving hope for a secure future.

For instance, the total value locked in the ETH 2.0 deposit contract just reached an all-time high of 16,694,295 ETH, which looked promising. 

Besides, as per CryptoQuant’s data, ETH’s exchange reserve was decreasing, indicating less selling pressure.

The king alt’s total number of active wallets also increased.

However, ETH’s taker buy-sell ratio turned red. This was a negative signal, as it indicated that selling sentiment was dominant in the derivatives market.

Realistic or not, here’s ETH market cap in BTC‘s terms

Decent on-chain performance

Furthermore, Santiment’s chart suggested that ETH’s velocity remained relatively high, indicating more movement of the asset across addresses.

Its network growth also managed to go up in the last few weeks, which was a positive signal. Nonetheless, despite the Shanghai upgrade anticipation, ETH’s development activity has declined lately. 

Source: Santiment

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