Bitcoin whales, or major tokenholders, are increasing their sales of the world’s original cryptocurrency to invest in Ether’s market potential.
This action indicates a “natural rotation” in the market towards Ether (ETH) and altcoins that offer greater growth opportunities, according to Nicolai Sondergaard, a research analyst with the crypto intelligence platform Nansen, as reported by Cointelegraph.
Despite rising concerns about impending sales pressure, which stemmed from Ethereum’s validator queue hitting a historic $5 billion in ETH tokens on Thursday, leading to unprecedented withdrawal times of 18 days and 16 hours, there is a notable capital migration among investors.
A significant contributor to this shift might be a whale with an $11 billion portfolio, which exchanged over $2.59 billion in Bitcoin (BTC) for $2.2 billion in spot Ether and a $577 million perpetual long position, resulting in $33 million in profit from the perps long position on Monday, according to Cointelegraph.
Crypto whales acquire $456M in Ether amid “natural rotation” from Bitcoin
Big investors in cryptocurrency are purchasing hundreds of millions in Ether, suggesting an organic migration of investor focus towards altcoins that have higher potential returns.
According to blockchain data platform Arkham, nine major whale addresses collectively purchased $456 million worth of Ether (ETH) from Bitgo and Galaxy Digital, as announced in a Tuesday post on X post.
The rising demand from whales for the world’s second-largest cryptocurrency indicates a shift towards Ether and other promising altcoins, as noted by Nicolai Sondergaard from Nansen.
“This looks like a natural rotation, where investors are securing profits from Bitcoin’s surge and reallocating into other tokens for potential gains,” Sondergaard explained to Cointelegraph, adding:
“Ether, in particular, is seeing advantages due to its strong current appeal and momentum from Ether treasury firms.”
While the recent whale activities involving Ether are significant, the “broader trend is that investments are diversifying beyond Bitcoin as market players seek the next opportunity,” he said.
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Ethereum withdrawal queue reaches record $5B ETH, increasing sell pressure concerns
Ethereum is experiencing the largest validator withdrawal wave in crypto history, with over 1 million Ether tokens currently pending withdrawal from staking on Ethereum’s proof-of-stake (PoS) network.
The Ethereum exit queue exceeded 1 million Ether (ETH) valued at $4.96 billion on Thursday. This reflects the amount of Ether earmarked for withdrawal by the network’s validators, vital for block addition and transaction verification on the blockchain.
This mass withdrawal has prolonged the validator exit waiting period to a record 18 days and 16 hours, as indicated by blockchain data from validatorqueue.com.
While not every validator intends to liquidate their assets, a substantial proportion of the approximately $5 billion might be sold to capitalize on profits, especially given that Ether has appreciated by 72% in the past three months.
“The exit queue hitting 1 million ETH demonstrates robust market dynamics rather than being a cause for alarm,” stated Marcin Kazmierczak, co-founder of RedStone blockchain oracle firm, to Cointelegraph, adding:
“It’s important to note that these exits are minor compared to the institutional investments flowing into Ethereum.”
The “unprecedented interest” from public entities, such as treasury companies and exchange-traded funds, means that validator sales can be “easily absorbed by this institutional demand,” he noted.
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Blockchain tokenization prevents 394M tons of CO₂ in $32B ESG initiative
Wealth tokenization platform Arx Veritas and tokenization infrastructure firm Blubird are leveraging blockchain to avert nearly 400 million tons of CO₂ emissions, marking a milestone for the digital asset tokenization sector.
The two companies have tokenized $32 billion worth of Emission Reduction Assets (ERAs) on Blubird’s Redbelly Network, aspiring to establish a “new standard” for financing and tracking sustainability initiatives.
The tokenized assets comprise capped oil wells and coal mines, reflecting over 394 million tons of CO₂ emissions avoided, representing the largest tokenization effort aligned with Environmental, Social, and Governance (ESG) criteria.
The 394 million tons of CO₂ avoided are credited to two primary sources: the extraction, processing, transportation, and combustion of coal that would have otherwise been utilized, alongside the pollutants mitigated by sealing abandoned oil wells.
The emissions mitigated equate to approximately 395 million round-trips from New York to London, or 986 billion miles driven by a typical passenger vehicle, or 105 times the annual CO₂ emissions of Iceland.
Blubird is experiencing “robust institutional interest in the tokenization of ESG-compliant assets, with over half a billion dollars’ worth of transactions in negotiation and a significant institutional acquisition nearing completion,” the company shared in a Thursday update with Cointelegraph.
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Kanye West’s YZY token: 51,000 traders lost $74M, while 11 made $1M
Over 51,000 traders faced losses on Kanye West’s recently introduced memecoin, illustrating the risks tied to trading celebrity-backed tokens lacking fundamental technological utility.
The YZY token associated with Kanye West was launched on the Solana blockchain on August 21. It surged 1,400% within the first hour, later declining by over 80% in value.
Of the 70,200 traders who invested in the celebrity-endorsed token, more than 51,800 incurred losses, with three traders each losing over $1 million, according to data from blockchain analytics platform Bubblemaps.
“In contrast, 11 wallets generated $1M+,” reported Bubblemaps in a Wednesday post on X post.
While many of the token’s traders experienced significant losses, only 11 out of 70,000 wallets achieved over $1 million in profit, with 99 wallets securing over $100,000.
Currently, the YZY token’s price has plummeted over 80% from its peak, trading at $0.5515 with just 19,531 holders, as per data from blockchain intelligence platform Nansen.
Among the traders aiming to profit from the rapper-endorsed token was former kickboxing champion Andrew Tate, who entered a 3x leveraged short position on the YZY token, resulting in a total loss of $700,000 on the Tate-related Hyperliquid account, Cointelegraph reported on Friday.
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Hyperliquid surges as Arthur Hayes anticipates 126x growth in Tokyo
The native token of the decentralized derivatives exchange Hyperliquid was one of the few to showcase a gain in the past 24 hours, following crypto entrepreneur Arthur Hayes’ announcement at an event in Tokyo that he forecasts it will rise 126x in the coming three years.
Hyperliquid (HYPE) had increased nearly 4% within the last 24 hours, trading at $45.64 at the moment, although it briefly surpassed $47 earlier in the day.
Arthur Hayes, co-founder of BitMEX, made this projection at the WebX 2025 conference in Tokyo, suggesting that the expansion of stablecoins would drive the DEX’s annualized fees to $258 billion from its current revenue of $1.2 billion.
Hyperliquid functions as a decentralized exchange for perpetual futures, enabling traders to assume leveraged positions on cryptocurrency assets without needing ownership.
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DeFi market recap
Data from Cointelegraph Markets Pro and TradingView indicates that most of the top 100 cryptocurrencies by market capitalization finished the week on a downturn.
The OKB (OKB) token registered a decline of over 25%, standing out as the biggest loser in the top 100, while Aerodrome Finance (AERO) fell by more than 15% on the weekly scale.
Thank you for reading our weekly summary of the most significant developments in the DeFi space. Join us next Friday for more stories, insights, and educational content regarding this rapidly evolving sector.
