A dormant ethereum (ETH) whale who participated in the initial coin offering (ICO) in 2014 has resurfaced, encouragingly staking millions of coins.
Lookonchain data reveals that the whale, who has been inactive for years, recently created a new contract and staked 4,032 ETH, worth roughly $7.4 million, endorsing Ethereum.
During the ICO in July 2014, the whale received 60,000 ETH during the presale.
For some in the crypto space, his decision to stake coins is a vote of confidence in the long-term potential of Ethereum.
While ETH prices remain flat, his activity could influence demand since investors tend to observe and react to decisions made by whales. In essence, staking locks away coins, effectively removing them from circulation, a net positive for bulls.
Besides price action, this development also suggests a possible stabilization of the volatile crypto market, with investors gaining more confidence in the longevity of digital assets.
In recent days, ETH has been under pressure, down from the over $2,100 it posted in late May. However, prices have since recovered, floating higher after dropping to last week’s lows.
With Ethereum operating entirely as a proof-of-stake network, there has been a spike in the network activity, especially after the recent Shapella hard fork in April 2023.
To date, investors have staked over 21.9 million ETH worth over $40 billion, according to Etherscan data.
Users withdrawing ETH from exchanges
Meanwhile, Glassnode, an on-chain analytics provider, also reports a notable decrease in the ETH balance on exchanges.
Presently, ETH on centralized exchanges stands at a 5-year low of 17,945,575.311 ETH, indicating a significant outflow from exchanges, possibly to staking providers like Lido Finance, or to non-custodial wallets like MetaMask.
This shift in ETH balance could indicate the growing popularity of staking and the desire among investors to earn returns on their holdings. Added to that, this shows the drive for self-custody and decentralization.
As Ethereum, the second most popular crypto project globally, continues to evolve and attract renewed attention, it remains to be seen how staking activity will affect ETH’s supply and, possibly, prices.