A whale recently made a significant move in the crypto market by depositing $21 million worth of 4 DeFi tokens to the exchange Binance. This news sparked a range of reactions from the community, with concerns about a potential dump affecting the market.
The on-chain analytic firm Spotonchain first reported the whale’s activity, revealing that the dormant whale had sent 3,800 Maker (MKR) and 20,000 Aave (AAVE) tokens to Binance after a year of holding. The firm later suggested that the whale behind the transactions could be Tron founder Justin Sun, as three of the 13 addresses linked to the transfers were believed to be owned by Sun.
In a span of 30 minutes, the whale deposited a total of $21 million worth of DeFi tokens to Binance, including 93,979 AAVE and 3,800 MKR tokens. The purchases of MKR tokens were made in June 2023 for $2.43 million, while the AAVE tokens were acquired between June 2023 and January 2024 at an average price of $87.14. As a result, the whale had an estimated profit of around $7 million, with the majority coming from MKR.
In addition to the AAVE and MKR tokens, Sun also sent over 4,000 Compound (COMP) and 200,000 Liquity (LQTY) tokens to the exchange. The transactions included 4,178 COMP tokens worth approximately $245,000 and 203,823 LQTY tokens valued at around $217,000.
The community had mixed reactions to Sun’s transfers, with some viewing the deposits as a bearish sign that could potentially impact the token’s prices if dumped. However, others saw it as a bullish signal, suggesting that it might be a good time to invest in DeFi tokens.
Despite the concerns raised by the community, the 4 DeFi tokens sent to Binance did not experience significant price fluctuations following the transactions. AAVE saw a minor 1.4% drop before recovering, while MKR experienced a more significant decline over the weekend.
Overall, Sun’s recent deposits to Binance have stirred up the crypto community, with investors closely monitoring his on-chain movements for potential market impacts. The reactions to Sun’s actions highlight the volatility and uncertainty that characterize the crypto market, as traders navigate the ever-changing landscape of digital assets.
