The cryptocurrency community is abuzz after a wallet with suspected ties to Tron founder Justin Sun gobbled up a staggering $161 million worth of Ether on February 19th. This whale-sized purchase has sent shockwaves through the market, igniting speculation and potentially signaling a positive outlook for the world’s second-largest cryptocurrency.
At the time of writing, Ethereum (ETH) was fast approaching the $3K level, trading at $2,932, up 0.2% and 9.8% in the 24-hour and seven-day timeframes, data by Coingecko shows.
ETH inching closer to the $3k mark. Source: Coingecko
The Ethereum Address With A Tron Connection
The Ethereum buying spree unfolded across leading cryptocurrency exchange Binance and several decentralized exchanges (DEXs). All eyes are glued to the wallet identified by the partial address “TWGHNc,” known for its recent hefty transactions.
1/ In the past 32 hours, someone bought a total of 54,721 $ETH ($154.4M) from #Binance and #DEX.
Who is this guy? Could be #JustinSun?
Let’s dig deeper.👇 pic.twitter.com/6yh4GRZnws
— Lookonchain (@lookonchain) February 19, 2024
Analysts, piecing together the puzzle, point to the sheer size of these transactions suggesting the involvement of a major player with deep pockets and significant clout in the crypto space, like Sun. This theory gains traction when examining the wallet’s activity patterns, which show a striking correlation with another address, “0x7a95.”
For instance, TWGHNc deposited $5.4 million to HTX, followed by a near-identical withdrawal in ETH by 0x7a95 from the same exchange. Additionally, the 50 million USDT deposit to Binance by TWGHNc was closely mirrored by a 9,959 ETH withdrawal from Binance by 0x7a95.
Last week, TWGHNc pulled out a whopping $500 million in Tether (USDT) from the now-rebranded Huobi exchange (formerly HTX). Further fueling the rumor mill, the same wallet deposited a hefty $50 million USDT into Binance today.
Ethereum currently trading at $2,930 on the daily chart: TradingView.com
A Bullish Signal For Ether?
If the prevailing speculation proves accurate and Justin Sun is indeed the mastermind behind these strategic maneuvers, it would signify a noteworthy expression of confidence in Ethereum from one of the most influential figures within the blockchain and cryptocurrency industry. Such an endorsement from Sun could carry substantial weight and contribute to bolstering Ethereum’s standing.
Ether price action in the last 24 hours. Source: Coingecko
Meanwhile, Sun’s recent announcement of a groundbreaking Bitcoin Layer 2 solution aimed at enhancing interoperability within the blockchain space has already made waves. This initiative seeks to seamlessly integrate various token types on the Tron network with the Bitcoin network, paving the way for smoother cross-chain interactions.
This development marks a milestone for Tron and represents a significant leap forward for cryptocurrency as a whole. With plans to bridge over $55 billion in value to the Bitcoin network, Tron’s initiative has the potential to inject new life into the leading cryptocurrency.
Featured image from Getty Images, chart from TradingView