Ethereum’s Derivatives Market Thrives As Layer-2s Lower Costs, Whales Unload Large Holdings

Ethereum’s derivatives market has seen significant growth, thanks to the rise of Layer-2 solutions, which have drastically reduced transaction fees that once held back the sector.

This cost reduction has paved the way for a surge in derivatives protocols, driving impressive gains in the market since the beginning of the year.

High fees on Ethereum previously held back derivatives' growth, but with the popularity of Layer-2s, costs have dropped significantly.

This shift has fueled a surge in derivatives protocols, driving impressive growth in the space since the start of the year. pic.twitter.com/wAXZSLlvf4

— IntoTheBlock (@intotheblock) November 7, 2024

In the midst of this growth, two long-term Ethereum holders made substantial moves, unloading a total of 33,701 ETH (valued at $89.72 million) as the price of ETH surged by 13.75% in just 24 hours.

The first whale, “0xB8c,” a known Ethereum ICO participant, sent 25,000 ETH (worth $65.67 million) to Kraken at around $2,627 per ETH, leaving behind 64,450 ETH (valued at $181.2 million).

The second whale, “0x0c1,” made a rare move after 8.75 years of dormancy, selling 8,701 ETH for 24.05 million USDC at an average price of $2,764. This whale left behind just 2,304 ETH, locking in a $30.48 million profit, or a 689x return on their initial investment.

Two long-term $ETH holders unloaded 33,701 $ETH ($89.72M) as the price surged 13.75% in 24 hours:

1/ Ethereum ICO whale "0xB8c" sent 25,000 $ETH ($65.67M) to #Kraken at ~$2,627, leaving 64,450 $ETH ($181.2M).

2/ Whale "0x0c1" returned after 8.75 years to sell 8,701 $ETH for… pic.twitter.com/KrmC7KT60m

— Spot On Chain (@spotonchain) November 7, 2024

In another remarkable move, a third Ethereum whale, who had been dormant for over eight years, began selling off their 12,001 ETH (worth $34.1 million). This whale originally withdrew the ETH from ShapeShift in early 2016 for just $8.58 per ETH, meaning they stand to make an impressive $34 million profit today—an incredible 330x return.

Another #Ethereum whale holding 12,001 $ETH ($34.1M) woke up after 8.75 years of dormancy and started selling on-chain!

Like whale '0x0c1' from our last tweet , this whale withdrew 12,001 $ETH (then $103K) from #ShapeShift in early 2016 at an average of $8.58.

Selling now… https://t.co/Y3DXsbeb0T pic.twitter.com/d4Xc3s1Cy8

— Spot On Chain (@spotonchain) November 7, 2024

Ethereum Spot ETFs Recorded Notable Inflows 

Amid these whale transactions, Ethereum spot ETFs saw notable inflows, with $52.29 million flowing into the space, further solidifying Ethereum’s growing presence in the institutional investment arena. This momentum is fueling optimism around Ethereum’s future, especially with Layer-2 scaling solutions driving the next phase of growth.

On November 6, Bitcoin spot ETFs had a total net inflow of $622 million. Fidelity ETF FBTC had an inflow of $309 million. Ethereum spot ETFs had a total net inflow of $52.2884 million. Bitcoin spot ETFs had a total daily turnover of $6.07 billion, the highest since March 15.…

— Wu Blockchain (@WuBlockchain) November 7, 2024

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: bizoon/123RF // Image Effects by Colorcinch