Here’s What Ethereum (ETH) Whales Are Doing Ahead of Airdrop of Year
Ethereum currently stalling at around $1,800, and upcoming airdrop could be reason behind it
The activity of Ethereum whales has been on the rise as the market anticipates the upcoming Arbitrum airdrop, which is expected to significantly increase market volatility. The recent stale performance of Ethereum, the second largest cryptocurrency by market capitalization, can be partly attributed to this anticipation as investors await the airdrop’s impact on the market.
A notable example of this increased whale activity is an Ethereum whale who transferred 7,868 ETH to Binance just 10 hours before the announcement of the Federal Reserve’s rate decision. This same whale received 19.6 million USDC from Binance only two hours after the announcement.
The guy who calls himself “smartestmoney” transferred 7,868 $ETH to #Binance 10 hours before the announcement of the Fed rate decision.
Then received 19.6M $USDC from #Binance 2 hours after the announcement. #FOMC
Really smart!https://t.co/3wI6YKZlB8 pic.twitter.com/BqtIItEYMS
— Lookonchain (@lookonchain) March 23, 2023
The increased movement of funds to exchanges can be interpreted as a sign of potential selling pressure once the ARB tokens are dropped. However, it is also possible that these funds are being positioned to buy ARB tokens immediately after their launch on the market. Either way, this activity is expected to contribute to heightened volatility on the Ethereum market in the coming days or even hours.
The Arbitrum airdrop has generated significant interest from investors, as it represents the introduction of the token of the biggest L2 network on Ethereum. As more users and developers flock to the platform, the demand for ARB tokens is expected to rise, which could create short-term price fluctuations for both Ethereum and ARB.
At press time, the majority of analysts expect a flash drop of the ARB’s price considering the volume of “free” tokens that will be distributed among users. However, the long-term perspective for the token remains unclear and will mostly depend on the demand for cheaper Ethereum alternatives and the DeFi industry in general.