An unidentified cryptocurrency investor has generated a substantial profit of $13.53 million in just two months by staking a significant portion of Ethereum (ETH).
The whale initially staked 10,999 ETH, valued at approximately $46.69 million at the transaction time. This large-scale staking action coincides with a rise in overall Ethereum staking inflows and has contributed to bullish market sentiment around the asset.
The resulting demand and reduced liquid supply pressure helped propel ETH’s price upwards recently, reaching approximately $4,170. Market analysts point to Ethereum’s proof-of-stake consensus mechanism as a key factor, enhancing capital efficiency and reducing available ETH for trading.
Major platforms facilitating staking, such as EigenLayer and contributors to the ETH2.0 shift, are seeing increased activity. Institutions are also demonstrating heightened interest in the staking ecosystem.
Staking involves locking up ETH to support network operations and security. This mechanism effectively reduces the ETH circulating on exchanges, which can contribute to price stability and upward dynamics under sustained demand.