The increase in trading activities increased competition for arbitrage and MEV bot traders who seek profit from the opportunity to execute their trades quickly. As such, Ethereum’s volume is far outpacing volumes for other platforms.
This includes BNB Chain and Base, which generated $2.47 million and $2.71 million, respectively.
Gas fees have been increasing toward 253 Gwei on the 29th of October, as demand for block space continues to rise. Whether this increase in activity will be an indication of further stress within the overall market is still unclear.
Ethereum whale accumulates $38M in $ETH
Although the Binance breach triggered intense trading activity on Ethereum, whales have utilized this volatility to accumulate long-term positions. On the 29th of October, whale 0x9EcA purchased 16,658 $ETH using approximately $37.96 million in $USDC.
With each purchase averaging $2,279 per token, they executed multiple buys through Uniswap’s [UNI] V2 Dutch Order Reactor in order to facilitate the conversion of $USDC to $ETH. Each individual buy ranged from 349 $ETH to nearly 375 $ETH.
This demonstrates sustained accumulation as opposed to simply a large-scale order. Therefore, these purchases may help to support demand for $ETH during periods of continued uncertainty.
However, one whale’s purchases alone cannot confirm a broader shift in sentiment or reverse selling pressure.
Ethereum’s U.S. buying demand weakens
Even though whales continue to accumulate large amounts of $ETH, Ethereum’s price recovery is faced with yet another challenge in the U.S. market, where buying demand remains weak.
The Coinbase Premium index fell to –0.21 on the 29th of October, the lowest levels since February, as $ETH prices continued to trade below Binance prices.
Therefore, the extended discount indicates either stronger selling pressure or less buying interest among the U.S. traders, thereby possibly neutralizing any buying pressure exhibited by larger on-chain players.
However, the index has since rebounded toward –0.13, indicating some reduction in that pressure.
Still, the reading remains negative, leaving U.S. demand on uncertain footing. A sustained move above zero would provide stronger evidence of renewed buying interest and improve Ethereum’s recovery prospects.
Final Summary
-
Ethereum recorded $47.3 million in daily fees after the Binance breach triggered intense trading and MEV activity.
-
A whale accumulated 16,658 $ETH, worth $37.96 million, while negative Coinbase Premium readings exposed persistent weakness in U.S. demand.
