A crypto whale has reportedly made a significant transaction on the DeFi protocols, according to onchain analyst Lookonchain. The whale deposited 10100 ETH, equivalent to $18.81 million, in three transactions into Morpho AAVE, longing ETH and WBTC. The whale then borrowed $11.5 million of stablecoins and sent them to a wallet on Binance. The transaction took place on Saturday, April 22, 2023, after ETH dropped below $1,850 and into a support region characterized by multiple daily price tests and a significant Fibonacci level.
Spot On Chain, another onchain data analyst, identified the same whale to have swapped about $1.37 million USDT for 50 WBTC in a transaction a few hours before executing the transactions reported by Lookonchain. The whale made the swap when Bitcoin traded for $27,314. The whale’s historical trading activities showed that on March 13, 2023, the whale swapped 421,853 USDT for 20 WBTC and sold it 48 hours later for 497,504 USDT, earning a profit of $75,651, reflecting a 17.9% return on interest (ROI) in the transaction.
Lookonchain’s report has caught the attention of investors who are closely monitoring ETH’s price behavior. Some respondents suspect that the recent correction may be over, and ETH could resume the dominant uptrend that started at the beginning of the year. ETH’s price climbed above $2,000 for the first time in 2023, reaching a yearly high of $2,140 before correcting last week amid concerns about crypto regulatory conditions by the U.S. Security and Exchange Commission (SEC). The price drop saw ETH lose 14.9% of its value in 5 days as it dropped into an area of significant support. Traders expect the price to bounce back and follow the year’s overall trend, especially after the network’s recent Shanghai Upgrade.
The whale’s transaction is a clear indication that some investors remain bullish on ETH despite the recent price correction. The whale’s decision to long ETH and WBTC suggests that they believe in the long-term potential of these cryptocurrencies. It is worth noting that the DeFi protocols have gained significant popularity in recent months, with more investors choosing to use them to borrow and lend cryptocurrencies. This trend is likely to continue as more investors become aware of the benefits of DeFi protocols.
Overall, the recent price correction in the crypto market has caused some concern among investors. However, it is important to note that corrections are a normal part of any market cycle. As such, investors should remain calm and focus on the long-term potential of the cryptocurrencies they hold. With the recent upgrades to the ETH network and the growing popularity of DeFi protocols, there is reason to be optimistic about the future of ETH and other cryptocurrencies.