Bitcoin whales, or large token holders, are liquidating a portion of the world’s pioneering cryptocurrency to capitalize on Ether’s pricing.
This development indicates the market’s “natural rotation” towards Ether (ETH) and other altcoins that present greater growth potential, according to Nicolai Sondergaard, research analyst at the crypto intelligence platform Nansen, in remarks to Cointelegraph.
The increasing inflow of investor capital has been observed despite rising worries about forthcoming selling pressure, given that the Ethereum validator queue hit an unprecedented $5 billion in ETH tokens on Thursday, with withdrawal times escalating to a historic 18 days and 16 hours.
This investor shift is partly linked to a major $11 billion whale, which transformed over $2.59 billion in Bitcoin (BTC) into a $2.2 billion spot Ether and a $577 million perpetual long position, securing $33 million in profits from the long positions on Monday, Cointelegraph reported.
Crypto whales purchase $456M in Ether in “natural rotation” from Bitcoin
Big investors in cryptocurrency are acquiring hundreds of millions in Ether, as analysts highlight a seamless shift of investor focus towards altcoins with enhanced upside potential.
Nine significant whale addresses collectively purchased $456 million worth of Ether (ETH) from Bitgo and Galaxy Digital, according to a Tuesday X post by blockchain data platform Arkham.
The rising demand from whales for the second-largest cryptocurrency indicates the market’s “natural rotation” into Ether and other altcoins with more potential, Nicolai Sondergaard noted.
“Much of this seems like a natural transition, with investors securing profits from Bitcoin’s rally and reallocating into other tokens for potential gains,” he stated to Cointelegraph, adding:
“Ether, in particular, is witnessing benefits due to its strong current mindshare and momentum stemming from Ether treasury firms.”
While the recent activity among Ether whales is “noteworthy,” the “broader trend indicates that flows are diversifying beyond Bitcoin as market participants seek the next opportunity,” the analyst added.
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Ethereum exit queue peaks at $5B ETH, escalating sell pressure worries
Ethereum is experiencing the largest validator exodus in crypto history, with over 1 million Ether tokens currently queued for withdrawal from staking on Ethereum’s proof-of-stake (PoS) network.
The Ethereum exit queue surpassed 1 million Ether (ETH) valued at $4.96 billion as of Thursday. This amount reflects the Ether set for withdrawal by the network’s validators, who add new blocks and verify transactions in the proposed blocks, playing a critical role in the blockchain’s operation.
The significant exodus has resulted in the validator exit wait time reaching an unprecedented 18 days and 16 hours, as per blockchain data from validatorqueue.com.
Although this isn’t an indication that all validators are keen to sell their holdings, a substantial share of the nearly $5 billion may be liquidated to secure profits, particularly as Ether prices have surged 72% over the past three months.
“The exit queue reaching 1 million ETH reflects robust market dynamics rather than posing a threat,” stated Marcin Kazmierczak, co-founder of RedStone, a blockchain oracle firm, to Cointelegraph, adding:
“It’s essential to recognize that these exits are dwarfed by the institutional capital flowing into Ethereum.”
The “unprecedented demand” from public vehicles like treasury firms and exchange-traded funds ensures that validator sales are “quickly absorbed by this institutional appetite,” he added.
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Blockchain tokenization prevents 394M tons of CO₂ in $32B ESG endeavor
Wealth tokenization platform Arx Veritas and tokenization infrastructure firm Blubird are utilizing blockchain technology to avert nearly 400 million tons of CO₂ emissions, establishing a record for the digital asset tokenization sector.
The two companies have tokenized $32 billion of Emission Reduction Assets (ERAs) on Blubird’s Redbelly Network, aiming to set a “new standard” for the financing and tracking of sustainability initiatives.
The tokenized assets encompass capped oil wells and coal mines, signifying over 394 million tons of avoided CO₂ emissions, marking the most extensive tokenization effort aligned with the Environmental, Social, and Governance (ESG) framework.
The 394 million tons of averted CO₂ emissions stem from two origins: the extraction, processing, shipping, and combustion of coal that could have been utilized, alongside the pollutants mitigated by sealing off abandoned oil wells.
These emission reductions equate to nearly 395 million round-trip flights from New York to London, or 986 billion miles driven by an average passenger vehicle, or 105 times the annual CO₂ emissions of Iceland.
Bluebird is experiencing “strong institutional interest in the tokenization of ESG-aligned assets, with over half a billion dollars’ worth of transactions currently in negotiation and significant institutional purchases nearing completion,” the firm outlined in a Thursday announcement shared with Cointelegraph.
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Kanye West’s YZY token: 51,000 traders lost $74M, while 11 made $1M
Over 51,000 traders incurred losses on Kanye West’s newly launched memecoin, underscoring the potential risks of trading celebrity-backed tokens that lack intrinsic technological utility.
The YZY token, associated with Kanye West, debuted on the Solana blockchain on August 21. It surged by 1,400% within the first hour but subsequently plummeted by more than 80% of its value.
Of the 70,200 traders who engaged with the celebrity-endorsed token, over 51,800 realized losses, with three traders each losing more than $1 million, according to blockchain data from Bubblemaps.
“Conversely, 11 wallets generated profits exceeding $1 million,” Bubblemaps noted in a Wednesday X post.
Amid the significant losses for the majority of the token’s investors, only 11 out of 70,000 wallets reported profits exceeding $1 million, while 99 reported gains surpassing $100,000.
Currently, the price of the YZY token has declined by over 80% from its peak, trading at $0.5515, with just 19,531 holders remaining, according to data from blockchain intelligence platform Nansen.
Among the traders attempting to profit from the rapper-endorsed token was former kickboxing champion Andrew Tate, who engaged in 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 among the few to show gains in the past 24 hours, following crypto entrepreneur Arthur Hayes’s prediction at a Tokyo event, suggesting it could appreciate 126x over the next three years.
Hyperliquid (HYPE) rose nearly 4% over the last day, trading at $45.64 at the time of writing, although it briefly surpassed $47 earlier in the day.
BitMEX co-founder Arthur Hayes made this forecast during the WebX 2025 conference in Tokyo, stating that the expansion of stablecoins would boost the DEX’s annualized fees from $1.2 billion to $258 billion.
Hyperliquid is a decentralized exchange for perpetual futures, a type of derivative contract that doesn’t expire, permitting speculators to adopt leveraged positions on crypto assets without physically owning them.
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DeFi market summary
Data from Cointelegraph Markets Pro and TradingView indicates that most of the top 100 cryptocurrencies by market cap concluded the week in a downward trend.
The OKB (OKB) token experienced a decline exceeding 25%, marking the week’s largest drop within the top 100, followed by the Aerodrome Finance (AERO) token, which fell more than 15% on the weekly chart.
Thank you for reviewing our summary of this week’s key DeFi developments. Join us next Friday for more updates, insights, and educational content regarding this rapidly evolving arena.
