Crypto Whale Suffers $4.5M Losses in Failed Ethereum Bets

A crypto whale recently lost over $4.5 million attempting to long Ethereum (ETH) twice, according to the digital asset tracker Lookonchain. The whale initially lost $500,000 on their first attempt, followed by a more significant loss in their second try. The whale sold all their ETH on Binance to repay debt and lost an additional $4 million. Notably, other whales are accumulating Ethereum, with one withdrawing $31.5 million worth of ETH to stake in DeFi projects.

Crypto Whale Amasses Losses of Over $4.5 Million in Failed Ethereum Long Attempts

A prominent cryptocurrency whale has incurred substantial losses of more than $4.5 million in two unsuccessful attempts to execute long positions on Ethereum (ETH), according to data from blockchain intelligence firm Lookonchain.

The first attempt, involving a long position on the Ethereum network, resulted in a $500,000 deficit for the whale. Undeterred, the whale made a second attempt, which proved even more disastrous, leading to additional losses.

"The whale sold all 10,701 ETH ($33 million) on Binance to repay debt two hours ago, losing more than $4 million," Lookonchain reported. "He went long ETH by depositing ETH on Compound and borrowing USDT to buy more ETH."

Compound (COMP) is a decentralized lending platform that allows users to deposit and borrow cryptocurrencies.

Amidst the whale's misfortunes, other whales have been actively accumulating Ethereum. One whale withdrew 10,000 ETH (approximately $31.5 million) from Binance on Monday and staked it into Pendle (PENDLE) and Renzo, two decentralized finance (DeFi) initiatives associated with the Ethereum ecosystem.

Another whale withdrew 5,282 ETH (close to $48.2 million) from Binance and OKX on the same day.

At the time of writing, ETH is trading at $3,093, indicating a decrease of nearly 12% in the past week and over 14% in the past month. Moreover, it remains significantly below its all-time high of $4,878, set in November 2021, representing a decline of more than 36%.

The recent market volatility has had a significant impact on the cryptocurrency industry, with major assets like Bitcoin (BTC) and Ether (ETH) experiencing substantial price fluctuations. Despite the setbacks, institutional investors and long-term holders remain optimistic about the long-term potential of cryptocurrencies.