Over the course of a weekend, a single crypto whale made a significant withdrawal of over $206 million worth of Ethereum (ETH) from Bitfinex, as reported by Lookonchain, a digital asset tracker. It is believed that the whale in question is Abraxas Capital Management, a UK-based investment manager specializing in crypto since 2017. The firm currently manages three digital asset funds with a total of over $2 billion in assets as of April 2024.
According to reports, Abraxas deposited the ETH into Spark, a decentralized finance (DeFi) infrastructure provider, with the intention of using it as collateral for the stablecoin DAI. The same whale address then borrowed 101 million DAI from Spark, exchanged it for an equal amount of the stablecoin USDC, and subsequently deposited the USDC into Binance.
Spark offers a money market protocol called SparkLend, which is centered around DAI, as well as sDAI, a stablecoin that generates yield. Currently, ETH is trading at $3,442. Over the past seven days, it has experienced a nearly 3% increase, but over the past month, it has seen a decline of almost 10%. Ethereum remains more than 29% below its all-time high of $4,878, which it reached in November 2021.
USDC and DAI are the second- and third-largest stablecoins by market capitalization, respectively. Both aim to maintain a 1:1 peg with the US dollar. It is important for investors to conduct their own research and exercise caution before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. Transfers and trades are carried out at one’s own risk, and any losses incurred are the responsibility of the individual. The Daily Hodl does not provide investment advice or endorse the buying or selling of cryptocurrencies or digital assets.
