Bitcoin whales, or major token holders, are increasing their sales of the world’s first cryptocurrency to take advantage of Ether’s price movements.
This shift indicates a market “natural rotation” toward Ether (ETH) and other altcoins with significant growth potential, according to Nicolai Sondergaard, a research analyst at crypto intelligence platform Nansen, in an interview with Cointelegraph.
Investor capital is being rotated despite rising concerns about potential selling pressure, evidenced by the Ethereum validator queue hitting an all-time high of nearly $5 billion in ETH tokens on Thursday, extending withdrawal times to a record 18 days and 16 hours.
A significant part of this investor shift can be linked to a massive $11 billion whale that transferred over $2.59 billion worth of Bitcoin (BTC) into a $2.2 billion spot Ether and a $577 million perpetual long position, securing $33 million in profit from the perpetual long on Monday, reported Cointelegraph.
Crypto whales buy $456M Ether in “natural rotation” from Bitcoin
Large cryptocurrency investors are purchasing hundreds of millions of Ether, as analysts observe a natural shift in investor interest toward altcoins with better growth prospects.
Nine “massive” whale addresses collectively acquired $456 million worth of Ether (ETH) from Bitgo and Galaxy Digital, as noted by blockchain data platform Arkham in a Tuesday X post.
The rising interest from whales in the second-largest cryptocurrency shows the market’s “natural rotation” into Ether and other altcoins expected to appreciate, as per Nicolai Sondergaard from Nansen.
“This trend resembles a natural rotation, where investors are taking profits from Bitcoin’s gains and reallocating into other tokens with potential for upside,” Sondergaard told Cointelegraph, adding:
“Ether, in particular, is thriving because it has significant current interest and momentum from Ether treasury companies.”
While recent whale movements in Ether are “noteworthy,” the overall trend indicates that capital flows are diversifying beyond Bitcoin as market players seek the next opportunity, the analyst mentioned.
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Ethereum exit queue hits record $5B ETH, raising sell pressure concerns
Ethereum is experiencing the largest validator exit in crypto history, with over 1 million Ether tokens currently queued for withdrawal from staking on Ethereum’s proof-of-stake (PoS) network.
The exit queue for Ethereum surpassed 1 million Ether (ETH) valued at $4.96 billion on Thursday. This amount represents Ether set for withdrawal by the network’s validators, who add new blocks and verify transactions, playing a crucial role in the blockchain network’s operation.
This mass exit has extended the validator withdrawal wait to a record 18 days and 16 hours, according to blockchain data from validatorqueue.com.
While this does not imply that all validators aim to sell their assets, a significant portion of the $5 billion may indeed be liquidated to secure profits, especially given that Ether has appreciated 72% in the last three months.
“The exit queue reaching 1 million ETH underscores healthy market dynamics rather than a cause for alarm,” remarked Marcin Kazmierczak, co-founder of RedStone blockchain oracle firm, in conversation with Cointelegraph, stating:
“It’s important to realize that these exits are minor compared to the influx of institutional capital flowing into Ethereum.”
The “unprecedented demand” from public entities like treasury firms and exchange-traded funds suggests that the sales from validators are “easily absorbed by this institutional appetite,” he concluded.
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Blockchain tokenization prevents 394M tons of CO₂ in $32B ESG effort
The wealth tokenization platform Arx Veritas and tokenization infrastructure company Blubird are utilizing blockchain technology to prevent nearly 400 million tons of CO₂ emissions, setting a new record in the digital asset tokenization sector.
These two firms have tokenized $32 billion worth of Emission Reduction Assets (ERAs) on Blubird’s Redbelly Network, aiming to establish a “new standard” for financing and monitoring sustainability initiatives.
The tokenized assets consist of capped oil wells and coal mines, collectively preventing over 394 million tons of CO₂ emissions, representing the largest tokenization effort under the Environmental, Social, and Governance (ESG) framework.
The avoided emissions equate to nearly 395 million round trips from New York to London or 986 billion miles driven by an average passenger vehicle, or 105 times the annual CO₂ emissions of Iceland.
Blubird is witnessing “strong institutional interest in the tokenization of ESG-compliant assets, with over half a billion dollars in transactions currently under negotiation and a significant institutional purchase approaching completion,” the firm disclosed in a Thursday announcement shared with Cointelegraph.
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Kanye West’s YZY token: 51,000 traders lost $74M, while 11 netted $1M
Over 51,000 traders faced losses on Kanye West’s newly launched memecoin, underscoring the risks associated with trading celebrity-endorsed tokens lacking intrinsic technological value.
Launched on the Solana blockchain on Aug. 21, the Kanye West-affiliated YZY token surged 1,400% in the first hour before plummeting over 80% in value.
Of 70,200 traders who invested in the celebrity-endorsed token, more than 51,800 experienced losses, with three traders losing over $1 million, according to data from blockchain analytics platform Bubblemaps.
“Conversely, 11 wallets achieved profits of over $1M,” noted Bubblemaps in a Wednesday X post.
A majority of the token’s traders suffered substantial losses, with only 11 out of 70,000 wallets making over $1 million in profit, while 99 wallets made over $100,000.
Meanwhile, the YZY token’s price has dropped over 80% from its all-time high, now trading at $0.5515, with just 19,531 traders holding the token, according to data from blockchain intelligence platform Nansen.
Former kickboxing champion Andrew Tate was among the traders attempting to capitalize on the rapper-endorsed token. Tate engaged in a 3x leveraged short position on the YZY token, leading to a total loss of $700,000 in the Tate-associated Hyperliquid account, reported Cointelegraph on Friday.
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Hyperliquid spikes as Arthur Hayes predicts 126x upside in Tokyo
The token driving the decentralized derivatives exchange Hyperliquid was one of the few to record gains in the past 24 hours, as crypto entrepreneur Arthur Hayes told an audience in Tokyo on Monday that he anticipates a 126x increase over the next three years.
Hyperliquid (HYPE) had risen nearly 4% in the last 24 hours, trading at $45.64 when this was written, although it briefly surpassed $47 earlier in the day.
BitMEX co-founder Arthur Hayes made this prediction at the WebX 2025 conference in Tokyo, stating that stablecoin growth would increase the DEX’s annualized fees to $258 billion from its current annualized revenue of $1.2 billion.
Hyperliquid is a decentralized trading platform for perpetual futures, derivative contracts without an expiry date, allowing speculators to take leveraged positions on cryptocurrency assets without ownership.
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DeFi market overview
Based on data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization wrapped up the week in the negative.
The OKB (OKB) token declined over 25%, emerging as the week’s biggest loser among the top 100, followed by the Aerodrome Finance (AERO) token, which dropped over 15% on the weekly chart.
Thank you for reading our summary of this week’s most significant DeFi developments. Join us next Friday for additional stories, insights, and education regarding this swiftly evolving space.
