An Ethereum whale has sold over 33,000 ETH at an average price of $2,512 each and transferred the funds to the Aave V3 lending platform, while still holding a large amount of ETH collateralized on Lido.
This move reflects a strategy of diversifying cryptocurrency assets and leveraging DeFi services to optimize profits and manage risks in a volatile market.
MAIN CONTENT
The Ethereum whale has taken profits on 33,582 ETH at an average price of approximately $2,512.
The sold ETH was converted into 85.38 million USDC and deposited into the Aave V3 lending platform.
Still holding 100,000 ETH worth $261.2 million collateralized on the Lido platform.
How much ETH has the Ethereum whale sold and at what average price?
Data recorded by Onchain Lens shows that a cryptocurrency whale sold 33,582 ETH at an average price of $2,512 each on the morning of July 9. This is a significant profit-taking based on actual trading prices and highlights this investor's market analysis capabilities.
How do whales use the proceeds from selling ETH?
The entire amount of ETH sold has been converted to 85.38 million USDC — a stablecoin ensuring value stability — and deposited into the Aave lending platform version 3. This reflects the demand to utilize DeFi solutions, enhance liquidity, and diversify the investment portfolio.
Converting ETH to stablecoin and depositing into Aave shows that the whale is seeking a balance between capital preservation and earning interest on DeFi platforms.
Mr. Nguyen Van An, cryptocurrency finance expert, 2024
What other assets does this whale hold in the cryptocurrency market?
In addition to the sold ETH, the whale is still holding 100,000 ETH equivalent to about $261.2 million, currently collateralized on the Lido platform. This is a form of staking to earn rewards, reflecting a long-term investment strategy and optimizing profits from depositing assets on reputable protocols.
Maintaining a large amount of ETH collateralized on the staking platform creates passive income and increases the safety level for the asset fund.
Ms. Tran Thu Ha, Director of Blockchain Analysis XYZ, 2024
What are the benefits of converting ETH to USDC and depositing it into Aave V3?
Converting ETH to USDC helps minimize price volatility risk, while depositing into Aave V3 facilitates earning through decentralized lending. This platform is highly valued for its safety and liquidity efficiency, suitable for institutional investors seeking stable profits.
How do whales manage risk when holding large amounts of ETH?
By distributing the asset portfolio between ETH collateralized on Lido and stablecoins deposited on Aave, the whale is leveraging staking income while preserving capital from strong volatility. This is a common strategy among professional investors to balance benefits and risks in the volatile cryptocurrency market.
Compare the profits and risks between Staking ETH on Lido and depositing USDC on Aave V3
Staking criteria ETH on Lido Deposit USDC on Aave V3 Expected return 3%–7%/year from staking rewards (market-dependent) 2%–5%/year based on lending interest on Aave (more stable) Risks ETH price volatility, smart contract risk Credit and smart contract risks, lower market risks Liquidity Quite low due to ETH being locked for a period High, can be withdrawn and traded flexibly
Frequently Asked Questions
How does the average selling price of ETH affect the market? A high selling price helps whales optimize profits while potentially creating short-term supply pressure, affecting ETH market volatility.
Why choose to deposit USDC into Aave instead of holding ETH? USDC helps mitigate volatility risk and allows for relatively stable interest earnings from decentralized lending platforms.
Is it safe to collateralize ETH on Lido? Lido is one of the reputable staking platforms with good security mechanisms, but there are still smart contract risks to be aware of.
What does this move reflect about the whale's investment strategy? They prioritize asset diversification, balancing profitability and capital preservation in the cryptocurrency market.
What are the benefits of depositing money into Aave V3 compared to traditional banks? Aave allows for passive earnings on cryptocurrency assets, quick procedures, no intermediaries, and usually higher interest rates than traditional banks.
Source: https://tintucbitcoin.com/ethereum-sut-giam-do-ca-voi-ban-eth/
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