Golem Network’s $115 million in Ethereum move impacts the market

Ethereum-based decentralized computing network Golem has transferred 36,000 ETH worth $115 million to centralized exchanges over the last 37 days. Crypto journalist Wu Blockchain, who first reported the transfers, noted that the ETH was raised in a 2016 initial coin offering (ICO).

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The transfers of ETH to exchange have been strategic and similar to how whales execute sell-offs of their crypto holdings. Golem Network transfers the ETH from its main wallet to external addresses, from where they are sent to centralized exchanges in small batches of less than $10 million worth of ETH daily.

Golem sells 24,400 ETH as GLM falls 30% in one month

According to Lookonchain, the project has sold 24,400 ETH worth $72 million on Binance, Coinbase, and Bitfinex over the past three days. Despite the transfers and sales, Golem still holds 131,447 ETH worth over $400 million, per Arkham Intelligence data.

Golem Network is one of the early Ethereum projects and positions itself as a marketplace for decentralized computing power. It raised 820,000 ETH in November 2016, when ETH was worth only $10.2. However, despite remaining active, it has failed to live up to expectations. The latest update for the project was the launch of Golem-js 3.0.

Meanwhile, the project’s native GLM token has performed poorly amid the current bearish market conditions. As of press time, it is down 30% in the past 30 days to $0.3184. According to Coingecko data, it has a market cap of around $300 million and is 76% below its peak price in 2018.

ETH drops below $3k

Golem’s ETH transfer highlights the recent market trend where whales are selling off their Ethereum and Bitcoin stash to take profits. While Golem is the biggest seller, others have also made a profit. Spotonchain identified two traders who deposited 6,400 ETH and 7,240 ETH on Binance and Kraken today.

All these sell-offs have affected the ETH price, down 12% over the last seven days. It recorded a much more significant decline earlier today, dropping to as low as $2,826 before recovering to trade above $3,000. The volatile performance extends to BTC, which fell as low as $54,321 today before rebounding to $57,463 as of press time.

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Following the price volatility, $365 million worth of positions have been liquidated for 94,177 traders in the last 24 hours. Interestingly, the liquidation was shared almost equally by those with long and short positions, with both seeing liquidations of over $182 million each.