MASSIVE spike in dormant ETH today - but don't panic!
There's been a significant uptick in Ethereum's Age Consumed today, flagging renewed activity of previously dormant ETH on the blockchain:
According to ETH's Dormant Circulation metric, many of these coins - over 1.82m ETH - have not moved for as long as 5 years prior to today!
So what gives? Is the old ETH money finally giving up? Another sell-off event by the Ethereum foundation?
Our Top Transaction table shows that most of this ETH came from a known Kraken wallet to an as of yet unlabeled address:
The recipient address obtained a total of 2M (!) ETH in ~10 minutes, which could be rally-ending sell pressure if the address is indeed dumping.
Luckily, it seems the ETH movement is most likely due to internal transfers between Kraken wallets. Several analysts (on Twitter) have reported the unlabeled wallet belonging to Kraken, and our address label engineer seems to agree:
"I'd say there are 2 options: 1) this is a kraken wallet 2) this is a deposit address (also kraken)"
Overall, it's doubtful that we're seeing an avalanche of new sell-side pressure for the second biggest coin. An internal Kraken transfer is the likely cause.
Stay safe out there.