Golem Shifts 4,600 ETH to Binance and Bitfinex Amid Price Recovery

Golem, an Ethereum-based project, moved 4,600 ETH which is equivalent to $14.1 million at the time of transfer to cryptocurrency exchanges Binance and Bitfinex. This transfer reflects a seeming trend in the past month where the Golem has been sending a large amount of Ethereum to various exchanges.

Golem Shifts 4,600 ETH to Binance and Bitfinex

According to LookOnchain, Golem has moved 4,600 ETH, or around $14.1 million, to the exchanges Binance and Bitfinex. As a result, over the last five days, Golem has transferred 29,000 ETH to exchanges including Binance, Coinbase, and Bitfinex, which is equal to $88.9 million. This is a cause of concern among market analysts and investors to possible selling pressure on Ethereum.

These concerns can be attributed to the act of transferring large amounts of cryptocurrency to exchanges, which is usually followed by the selling of large amounts of cryptocurrency.

Golem(@golemproject) deposited 4,600 $ETH($14.1M) to #Binance and #Bitfinex again 1 hour ago.

Golem has deposited 29,000 $ETH($88.9M) to #Binance, #Coinbase and #Bitfinex in the past 5 days.https://t.co/T7DxXQNBzM pic.twitter.com/iRIk53HZMC

— Lookonchain (@lookonchain) July 9, 2024

Colin Wu, an independent journalist, explained that Golem’s wallet activity is frequent and involves large sums of money. As indicated by the blockchain analytics company Arkham, such transactions rarely exceed $10 million per day.

Market Reactions and Commentary

Golem is one of the first projects that implemented the ICO on the Ethereum blockchain and was able to gather $8.6 million in 2016 within 29 minutes. The project aimed at creating a decentralized marketplace for the provision of computational resources with the help of which people could rent out their unused processing power in exchange for GLM tokens.

However, large-scale transactions by Golem have drawn reactions from major stakeholders in the cryptocurrency industry. Ethereum advocate Anthony Sassano said that Golem’s actions are similar to the actions of EOS blockchain that sold tokens for $4 billion and then swapped them for BTC.

Sassano’s comments reflect the sentiment that investors have when initial projects appear to be drifting away from their initial intent.

Golem’s Response and GLM Price

In response to the increasing doubts, Golem responded to the recent activity through its social media platforms. The team also emphasized the focus on the growth of the Golem Network and the ecosystem, the team also plans to solo stake most of its ETH holdings. This statement is intended to calm the community down and state that the project is still dedicated to contributing to the Ethereum ecosystem.

However, the market is still quite skeptical about the situation. GLM, Golem’s native token, has fallen by 74% since its peak of $1.32 in 2018, which is common for early ICO projects. As of press time, GLM was trading at $0.3174, a 3.50% surge from the intra-day low.

Source: CoinMarketCap

Meanwhile, the recent ETH transfers by Golem are taking place at a time when the crypto market is closely observing the US regulatory landscape. The potential approval of a spot Ethereum ETF by the SEC has been a focal point, with several major financial firms submitting amended filings.

Experts believe that ETH prices may rise further with such an approval, with some targets set at $3,400. At press time, ETH price had recovered with price exchanging hands at $3,063.17, a 2.50% surge from the intra-day low. 

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