The volatile crypto market has seen another sell-off due to the recent price dip. As per Lookonchain, a whale has reportedly deposited up to 22,746 $ETH tokens to Binance for debt repayment amid a price slump. The on-chain analytics provider took to social media to disclose this incident.
The recent price drop forced whales to sell $ETH to repay debts.
A whale deposited 22,746 $ETH($77.7M) to #Binance in the past 5 hours and withdrew stablecoins from #Binance to repay debts on #Spark and #Aave.
And this whale has deposited a total of 31,968 $ETH($122.3M) to… pic.twitter.com/vhw9J1KTkP
— Lookonchain (@lookonchain) December 20, 2024
Whale Offloads $77.7M in $ETH to Binance over 5 Hours to Pay off Debt on Aave and Spark
Lookonchain mentioned that the Ethereum whale has made a significant deposit of up to $77.7M worth in $ETH to Binance. Over the past five hours, the whale has redeemed stablecoins from Binance to meet debts. For this purpose, the whale liquidated up to 22,746 $ETH tokens. As a result of this the whale targeted to recompense debts on the DeFi entities Aave and Spark.
The whale’s moves highlight the prevailing trend among the big crypto holders while the market experiences a plunge. Several whales are liquidating their $ETH holdings to pay off their debts. The recent decline of the $ETH prices have thus put a great pressure on these whales while the market tests their endurance.
The $ETH Liquidations Indicate a Wider Trend Amid the Crypto Market Downturn
With the liquidation of the $ETH tokens, these whales focus on minimizing their losses. In this case, the $ETH deposits signify the efforts to decrease liabilities and secure stablecoins. Therefore, the $ETH liquidation also reflects the increasing confidence in stablecoins to get some support while navigating the market uncertainty.
According to Lookonchain, over the last two days, the crypto whale liquidated a cumulative amount of 31,968 $ETH. In this way, the whale reportedly deposited nearly $122.3M to the well-known crypto exchange Binance. Such a substantial $ETH liquidation might lead to more sell-offs by the other major token holders.
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