Altcoins
Whale Selling – Ethereum, Altcoins, and Binance Move
- ETH Whales Sell Their Assets to Cover Their Debt on Aave and Compound
- This could push the price of ETH lower, especially in conjunction with the liquidation of BTC
- Binance will get good fees and DeFi could prove its worth
In the last two hours alone, 3 ETH whales have deposited and sold 28,558 ETH, worth approximately $82.2 million, via Binance.
So why did this happen and what effect would it have if more cases like this occurred?
Why would ETH whales make such moves?
The logic behind this is probably this: whales have been using ETH as collateral on DeFi platforms. They may have done this to borrow stablecoins to buy more ETH.
However, the market price of ETH has dropped significantly, disrupting their plans and forcing them to urgently sell their assets to pay off their debt and stop losses at current levels.
By default, Binance will receive significant interest if it is allowed to liquidate such assets on its platform.
What could this mean for the market as a whole?
Considering the situation within the fundamental laws of prices and market dynamics, the release of a large amount of assets could damage the already declining price of ETH and ETH-based altcoins. Another factor for their price decline could be the liquidation of Bitcoin, which you can also read about in our recent article.
What does this tell us about DeFi?
In addition to this, another point can be noted. The willingness of whales to sell assets to pay off debts on DeFi could express a serious attitude towards them. This could be a good sign for those who are looking for fully decentralized solutions and want to see DeFi as a serious player as a centralized platform in the cryptocurrency economy.