coinedition.com
An on-chain specialist, Lookonchain, revealed that an inactive wallet that was last active in Ethereum (ETH) initial coin offering ICO has suddenly transferred $53 Million worth of ETH. The ICO was held around six years ago and the wallet has been dormant since then.
As per the on-chain analyst, these funds are moved to staking contracts. According to Lookonchain’s tweet:
We noticed that an ETH ICO participant who has been dormant for 6 years started to stake 48,992 $ETH ($80M) in October this year. The ICO participant received 120K $ETH at Genesis via 3 addresses. And transferred 32,015 $ETH($53M) to a new address 5 hrs ago. (stake again?
Thus, the wallet initially moved 50,000 ETH for staking and later received 120,000 ETH at Genesis through three addresses. Yesterday, at 10:00 am UTC, 3200 ETH were received from Genesis to a new address.
This sudden transaction seems suspicious because Ethereum’s staking contract generally locks the funds of investors for some time until the staking period is over. This causes a significant amount of ETH to be removed from market circulation.
Thus, along with the burning of ETH tokens, a huge level of the staked Ethereum supply can prompt a bullish run for ETH.
In simple words, when a dormant wallet moves huge funds to staking and when funds get unlocked, a quick spike in ETH sales is likely to happen which in turn causes the market to turn volatile.