With Ethereum returning to the $3,000 mark, reaching a new high since April 2022, an early Ethereum investor who participated in the Ethereum ICO in 2014 and has been dormant for over 8 years suddenly transferred 1,732 ETH to Kraken last night, presumably intending to sell. Compared to the ICO price, its value has increased nearly 10,000 times.
(Earlier Summary:
Bulls and bears fight! Ethereum V breaks through $3,030, Bitcoin approaches $53,000 but falls sharply, Starknet oscillates at $2.)
(Background Information:
What are the potential opportunities of the Ethereum Cancun upgrade (Dencun)?)
The Ethereum Cancun upgrade (Dencun) mainnet is confirmed to launch on March 13th. This upgrade will introduce EIP-4844, which can significantly improve Ethereum’s scalability and potentially reduce Layer2 transaction costs by 10-100 times. With the impending Dencun upgrade, Ethereum broke through the $3,000 mark last night, reaching a new high since April 2022.
Early investor suspected of cashing out
After Ethereum broke through $3,000, according to Lookonchain monitoring, an Ethereum early investor who had been dormant for 8.6 years suddenly transferred 1,732 ETH to the cryptocurrency exchange Kraken last night, worth approximately $5.15 million, indicating a potential intention to cash out.
It is worth noting that this address, 0xE20BB9f3966419E14BbbaAaa6789e92496CFA479, participated in the 2014 Ethereum ICO. This address received 3,465 ETH in the genesis block, currently worth about $10.3 million. During the ICO, the Ethereum price was only about $0.31, compared to the current price of around $3,000, a nearly 10,000-fold increase. The address still holds 1,733.12 ETH, worth $5.2 million.
Ethereum launched a 42-day ICO in August 2014 with a crowdfunding goal of $19.7 million. It was conducted in three stages. In the first stage of 14 days, the ETH:BTC exchange rate was 2,000:1, which then dropped to 1,337:1. In total, the ICO raised 31,000 BTC and sold 60.1 million ETH, valued at approximately $18.4 million at the time.
Further reading:
The Price History of Ethereum: A Revelation of Ups and Downs – The Crazy Story that Started with a $0.3 Crowdfunding
Approval of Spot ETF Expected to Further Boost Prices
As Ethereum returns to the $3,000 mark, IntoTheBlock analysis suggests that there are currently over 16 million ETH addresses in a loss state (about 14.7% of total addresses). Approximately 879,000 addresses turned profitable when Ethereum broke through $3,000. With over 83% of addresses in a profitable state, it is highly likely that the $3,000 level can be successfully surpassed without major issues.
If the Ethereum spot ETF is approved by the SEC, it is expected to further drive Ethereum’s upward momentum. Bernstein, a Wall Street investment bank, released a research report on Monday stating that it is time to focus on Ethereum, as it may be the only digital asset expected to be approved by the SEC for a spot ETF. Bernstein believes that there is a 50% possibility of the Ethereum spot ETF being approved for listing before May and is almost certain to be approved within the next 12 months. Bernstein praises Ethereum for its staking rewards, environmentally friendly design, and institutional utility in building new financial markets, anticipating that Ethereum’s market value will grow in sync with its revenue market.
Related Reports:
Crypto Market Update: Ethereum Surges to $2,900, Reaching a 20-Month High, Bitcoin Reaches $52,000, Spot ETF Sees 15 Consecutive Days of Net Inflows
Gary Gensler: Don’t Celebrate Too Early! Approving Bitcoin Does Not Mean SEC Will Approve Ethereum Spot ETF, Cryptocurrency Assets Are Full of Fraud and Manipulation
Dencun Cancun Upgrade Approaching: How Will the New EIP Proposal Change Ethereum?