Cryptocurrency hedge fund Three Arrows Capital Ltd. is said to have purchased $400 million worth of Ethereum ETH/USD over the weekend.
What Happened: Chinese journalist Wu Blockchain noted on Twitter that 91,447 tokens of Ether were transferred in two days from the cryptocurrency exchanges FTX, Binance and Coinbase to the wallet marked by Nansen as that of Three Arrow Capital. Nansen is a blockchain analysis firm.
Three Arrows co-founder Su Zhu responded to the tweet by saying he would still bid it hard on any “panic dump” like over the last weekend. He added that 100,000 tokens of ether “is dust.”
See Also: How To Buy Ethereum (ETH)
Why It Matters: The Ethereum purchase by Three Arrows is significant as it comes just weeks after Zhu said he has abandoned the cryptocurrency despite having supported it in the past. He noted that newcomers to Ethereum cannot afford the chain due to its high transaction fees.
On-chain analytics provider Santiment had also noted last month that Ethereum’s high gas fees carried a high risk of “trader reluctance to circulate tokens.”
Ethereum, the world’s second-largest cryptocurrency by market capitalization, has outperformed apex cryptocurrency Bitcoin BTC/USD year-to-date following the rise in popularity of non fungible tokens (NFTs).
Ethereum’s year-to-date gains are 497.5%, compared to Bitcoin’s gains of 71.8% for the same period. However, the cryptocurrency is currently down 10.0% from its all-time high of $4,859.50 touched last month.
Price Action: Ethereum is down 0.8% during the past 24 hours, trading at $4,365.68 at press time.
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