Ethereum prices have been slowly cranking up over the past month, and there is a strong indication that whales are buying it up for investment in decentralized finance (DeFi) — and eventually staking.
Micky recently reported that a large institutional investment fund had snapped up almost half of all the Ethereum mined so far this year.
This is clear evidence that major investors are now looking at the future potential of ETH as an investment, especially with staking just around the corner.
DeFi is another way to make steady returns by locking up Ethereum as collateral to earn in crypto lending and borrowing markets.
Metacartel Ventures partner, Adam Cochran, tweeted a lengthy post on how and why whales are now loading up on ETH for use in DeFi.
“the amount of ETH whales have put into DeFi has more than doubled over the past 6 months”
Finding #30 – Delicious DeFi
In the top 250 wallets only TokenSets, https://t.co/8P2ygPdfLW and Maker have been used by individually owned wallets.
In the top 10k we also find Uniswap, Aave, Bancor, Compound, Kyber, Loopring, Nexus Mutual, Melon and Augur. pic.twitter.com/pk7aRj5tJp
— Adam Cochran (@AdamScochran) April 29, 2020
He added that with US$800 million [AU$1.2 billion] locked in DeFi, most of it comes from individual micro wallets, and it will not be long before the whales catch on.
Ethereum is currently back at $200, which went up by 54% since the beginning of the year despite a massive market crash last month caused by the COVID-19 outbreak.
Featured image courtesy of ArtTower/Pixabay