Significant Ethereum (ETH) Balance Moved to Binance to Await Action
Binance saw significant transfers in the past day, reaching 45,000 ETH, so far with an unknown effect on the markets.
Several large tranches of Ethereum (ETH) have gone into a known Binance wallet from previously unknown addresses. The transfers are yet to make significant whale moves, and the intention behind the transfers is unknown.
Binance is one of the best-visited exchanges, and it sees significant activity given the ability to use the large ETH balance to move various assets.
The amount of ETH transferred surpasses the 24-hour ETH volume on Binance, suggesting the transactions could have a significant effect on volatility. ETH pairs on Binance have relatively low activity, but there are plenty of tokens that could see pumps. The entire balance of the Binance_1 wallet has reached more than 299,894 ETH, which makes the 45,000-token transfer significant.
One theory is that this is an attempt to exchange the ETH for an anonymous coin. On Binance, one possible spot to allocate ETH would be the XEM/ETH pair. NEM (XEM) is revving up now, after Coincheck trading resumed, and the coin is pushing off from recent lows. XEM continued to pick up this Tuesday, as speculation has raised both volumes and upward bidding.
ETH market prices are currently hovering around $208.58, with much lower volatility. Even ICO sales of ETH treasury stores have slowed down. ETH is seen as weakening, especially after the Ethereum project failed to deliver several important milestones such as the delay in the proof-of-stake transition and the launch of the Casper protocol. However, the price has stabilized around $200 despite fears in late summer regarding a “capitulation event” and selling off of remaining balances.
ETH still accounts for more than 11% of all cryptocurrency trades, mostly in pairs with various tokens, and the importance of the coin in the ecosystem would mean an ETH capitulation could wipe out token-based projects.