The recent crypto market decline has gotten several traders worried and skeptical of how the various digital assets will end as the year winds down. Although Bitcoin and Ether posted some gains over the last 24 hours, their current prices are still far below their ATH level. The market dip has resulted in the loss of millions of dollars, with some potential investors afraid of going into the market.
Even with the current market dip, some big investors have decided to capitalize on the opportunity to boost their holdings against future price inclines. An example of such an investor is Three Arrows Capital, a Singapore-based crypto hedge fund.
Three Arrows Capital Acquired Ethereum In The Market Dip
It’s reported that Three Arrows Capital bought more than $84M worth of Ether – the second-largest crypto coin by market cap as the price of the popular altcoin dipped. Data from Etherscan reveals that the hedge fund transferred millions from Binance and Coinbase to their wallet.
Etherscan further elaborated that the firm withdrew approximately 14.8k ETH worth $56M from the popular exchanges to their wallet. In the last couple of days, the hedge fund moved about 22.4k ETH from the trading platforms to their wallet, as the altcoin price slowly declined to $3.7k.
These massive withdrawals came after the firm transferred 91,477 ETH onto their wallet last Thursday. According to Wu Blockchain, a total of 113,893 ETH has been shifted from trading platforms to the wallet between December 7 – 15, 2021. This fact surprised everyone, considering that the transaction happened after CEO Su Zhu disclosed that he had deserted Ethereum because it had “abandoned” its users.
In a tweetstorm, he explained that ETH was suffering from the founders’ lack of clear ideas, adding that they have deviated from what they initially set out to do because they have “become far too rich.” He pointed out high transaction fees on the chain as one factor hindering its massive adoption.
Zhu later addressed the misconception when he disclosed he had abandoned Ethereum. He said that although newcomers will have a hard time adopting the chain, he would still invest in ETH when there’s a market dip.
ETH Fees Hit New Highs
Last month, ETH’s transaction fees reportedly hit new highs, as the chain recorded massive transactions. Although still popular, many people are shifting their base to Solana due to its minimal transaction fees. In November, DeFi activity on the blockchain shot up due to its flexible costs.
Despite the amount of money paid to transfer funds on Ethereum, some are still betting on it. For example, Toronto-based healthcare firm Ask The Doctor recently converted some of its balance sheets to ETH. Last month, the healthcare company disclosed that it would integrate support for DOGE and other meme coins. At the moment, the firm is accepting payments in the cryptos.