DeFi
Whale deposits $21 million in DeFi tokens on Binance, is this Justin Sun?
In the early hours of Monday, a sleeping whale moved $21 million worth of 4 DeFi tokens to crypto exchange Binance. The news has sparked mixed reactions from the community, who are concerned about impending dumping amid the recent crypto market retracement.
Whale deposits $21 million in DeFi tokens on Binance
On-chain analytics firm Spotonchain on Monday reported a sleeping whale had deposited around $13 million in crypto on Binance. After a year of holding, The Whale sent 3,800 Maker (MKR) and 20,000 Aave (AAVE) to Binance.
The company later revealed that the whale was apparently Tron founder Justin Sun. Three of the 13 addresses allegedly owned by Sun were wallets that carried out the transfers.
According to the message, the whale deposited $21 million worth of 4 DeFi tokens on Binance in 30 minutes. The addresses sent 93,979 AAVE, worth approximately $11.26 million, and 3,800 MKR tokens.
Addresses purchased the MKR tokens in June 2023 for $2.43 million, acquiring all 3,800 tokens at an average price of $641.81. Meanwhile, AAVE tokens were purchased from June 2023 to January 2024 at an average price of $87.14.
At the time of publication, the crypto whale had an estimated profit of around $7 million, including $6.74 million. MKRand $252,000 from AAVE.
Additionally, Sun sent over 4,000 and 200,000 Compound (COMP) and Liquity (LQTY) tokens to the exchange. The transactions represent 4,178 COMP, worth approximately $245,000, and 203,823 LQTY, valued at approximately $217,000.
Are Sun transfers bearish or bullish?
Deposits have raised concerns within the crypto community, as deposits on exchanges are considered bearish and could significantly decrease the price of a token if dumped.
However, some considered the movements of the Sun to be a bullish signal. One X user expressed optimism, saying whales “always deposit during consolidation before breakout.”
Likewise, other crypto investors believe it’s “time to stock up on DeFi” and that “Justin is about to give us a generational entry.”
It is worth noting that the community is closely following the Tron founder’s on-chain movements. As reported According to NewsBTC, Sun is suspected of being the whale behind some of the massive Ethereum (ETH) purchases of Q1 2024. Sun apparently purchased over $891 million worth of ETH during the buying spree.
Despite the community reaction, the 4 DeFi tokens sent to Binance did not react significantly to transactions.
After the news, AAVE saw a slight decline of 1.4% to the $91.26 level before to recover the $92 support area. The token saw a 12.4% decline on Friday following the recent market downturn.
Similarly, MKR saw a sharp decline of 10.6% over the weekend from $2,600 to $2,300. However, the price of the token saw a decline of 3.1% in the last 24 hours. MKR fell 1.8% after the news, but failed to recover in the following hours, currently trading below $2,400.
Featured image from Unsplash.com, chart from TradingView.com