Ethereum made many disappointed after its merger. While the token’s fall seemed hard to explain to some, whales could be the big culprit.
The profit of Ethereum big fish still questioned
Ethereum has spent the past few months making headlines in crypto news following its The Merge update. But while an explosion in the price of tokens was expected, quite the opposite happened. If, at the beginning, the phenomenon was supposed to be temporary, the downward trend has been confirmed for several days. However, according to some data, the fall to have an explanation.
While the price of Vitalik Buterin’s coin remains firmly in the red, the market intelligence platform Saniment explored the reasons for this outcome. According to her, shortly after the merger, many addresses would be stripped of their tokens. These would not be held by just anyone since they would correspond to the crypto wallets with the most coins. Thus, accounts containing thousands to hundreds of thousands of ETH would have liquidated more than 2% of their assets.
The whales would therefore be to blame for this steep drop in Ethereum. These would indeed have accumulated the coins during the wave of enthusiasm that preceded The Merge. All with the ambition of reselling the precious tokens once the update is complete and therefore earning money. If the possibility of a sell-off caused by panic following the sudden fall of the token cannot be ruled out, the graphic proposed by Santiment seems to show that everything was calculated. Profit would therefore once again have wreaked havoc in the industry.
Actors sometimes too influential?
The influence of whales on cryptocurrency prices seems obvious since they sometimes hold record numbers of coins. However, their actions are far from doing the market any good. The latter use trends to generate profit. They are also the ones who precipitate the fall of certain tokens in the event of an incident. When the USTerra collapsed, they did not hesitate to sell their parts as quickly as possible.
Whales are also triggers of phenomena. When a piece is too weak, they usually turn to other projects. As a result, the public follows the movement and invests in its oven. The phenomenon is currently visible on the XRP side. As the coin continues to climb, large investors continue to accumulate. This suggests an upcoming sale and thus a drop in the value of the token. This behavior could portend dark times as many players battle speculation. If whales are the heyday of crypto, they are also the ones who hold the fate of projects in their hands. The industry could therefore be condemned to have to deal with extreme volatility and the greed of some members of its community for a long time.
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Ethereum: the fall of the token after The Merge could be the fault of the whales – BeinCrypto International
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