A cryptocurrency whale sold over 2,500 ETH before a major rally and then repurchased at a much higher price, losing $2.6 million.
A cryptocurrency trader spent $3.8 billion to buy Ether at a significantly higher price after having sold the asset for nearly the same amount about a month ago.
On May 22, blockchain analysis firm Lookonchain reported that a cryptocurrency wallet spent $3.8 billion to acquire 1,425 Ether.
ETH2358 € at $2,670 per coin, reentering ETH after a significant rally.
On April 13, the same wallet sold 2,522 ETH for $3.9 billion, when the asset was trading at approximately $1,570, a decision that, in retrospect, seems poorly made.
“Think twice before selling your assets,” Lookonchain wrote, highlighting the potential gains if the trader had simply held onto their Ether instead of selling and repurchasing at a higher price.
The trader loses a profit of $2.6 billion.
With ETH rising more than 70% since the sale, the trader lost more than 1,000 ETH, or approximately $2.67 billion, in the process of repurchasing. If the trader had decided to hold onto their Ether, the assets would be worth around $6.7 billion.
As ETH rallied, the asset surpassed the market capitalization of large companies such as Coca-Cola and Alibaba.
At the time of writing this article, the company data tracker 8marketcap shows that Ether's market capitalization of $321 billion makes it the 38th most valuable asset in the world, surpassing pharmaceutical company AbbVie and approaching Bank of America.
The rally in Ether is largely driven by the successful launch of its Pectra upgrade. The new upgrade introduced improvements in network scalability, validator user experience, and smart wallet functionality. These updates are expected to drive broader adoption of Ethereum's mainnet.
ETH leads cryptocurrency investment products with weekly inflows of $205 million.
Along with its recent price appreciation, investment products based on ETH in the United States also experienced renewed interest.
A report from May 19 by the digital asset manager CoinShares revealed that cryptocurrency investment products in the U.S. recorded inflows of $785 million last week. This development raises the year-to-date total for cryptocurrency ETPs to $7.5 billion.
ETH was the best-performing among cryptocurrency exchange-traded products (ETPs), attracting $205 million in inflows last week. This represents 26% of all inflows during the period. This also brings the year-to-date total for ETH to over $575 million.
The CoinShares report also attributed the increase in inflows to renewed optimism from investors following the Pectra upgrade and the appointment of Tomasz Stańczak as co-CEO of the Ethereum Foundation.
