After a few weeks of stagnation, yesterday turned out to be quite eventful for the Ether community, since it was reported that close to 45,000 ETH tokens were transferred into a known Binance wallet from an unidentified address.
However, it is still unclear at this point as to what the real intention behind this move actually is.
— WhaleWatch.io (@whalewatchio) November 12, 2018
More on the Matter
As many of our readers are already are already aware of, Binance is currently one of the world's most used crypto trading platforms. As a result of this, the exchange is able to witness quite a heavy movement of premier altcoins such as ETH, BTC, BCH via its trading channels on a near daily basis.
However, this time around the sum of ETH in question has surpassed the exchanges’ 24-hour Ethereum trade volume — thus indicating that this move could have a significant effect on the volatility of the crypto market in the coming few days.
Over the course of the past 72 hours, ETH pairs on have seen a drop in activity on Binance but with this latest move, the balance now available on the Binance_1 wallet has scaled up to a monumental 299,894 ETH (which makes the 45,000-token transfer even more important).
What’s Behind This Move?
As mentioned previously, the exact reasons associated with this move are still unclear at this time. However, one of the main theories looking to explain this transfer is that “someone is trying to exchange bulk ETH in place of some anonymous coin”. In this regard, one possibility on Binance for such an exchange would be the XEM/ETH pair. This is because NEM (XEM) has been garnering a lot of mainstream traction in recent times after pushing off from its recent lows.
Lastly, it is also worth looking at the dipping prices of ETH— with the premier digital asset currently trading around the $210 mark. However, what is most alarming is that the currency has been experiencing a high level of volatility recently due to the fact that the project dev team has time and again failed to deliver on a host of milestones.
Despite all of the bad press that Ether has been facing over the past couple of months, the asset still accounts for around 11% of all cryptocurrency trades that take place globally (on a daily basis). With that being said, what the future holds for ETH now is anybody’s best guess.