Metalfa Transferred 10,000 Ethereum from Lido to Binance, What Happens to Ethereum?

 A cryptocurrency company bought back a significant amount of Ethereum tokens from betting platform Lido and transferred them to cryptocurrency exchange Binance. Could this have negative consequences for Ethereum?

Is Ethereum Price Ready for Another Correction?

According to data from Arkham Intelligence, digital asset management firm Metalfa bought back 10,000 Ethereum (equivalent to approximately $26 million) from liquid betting platform Lido on Saturday, August 27. After being withdrawn to the Gnosis Safe Proxy wallet under the name Metalfa, the Ethereum tokens were sent to Binance, the world’s largest cryptocurrency exchange.

It’s important to pay attention to these types of asset movements, especially given the direction and magnitude of this move and its potential impact on the price of Ethereum. Additionally, these moves may shed light on the current sentiment of large institutional investors.

According to Arkham Panel, Ethereum tokens were transferred from a Gnosis Safe Proxy wallet to a wallet on the Binance exchange. Gnosis Safe Proxy wallets are known for their multi-signature functionality, which requires confirmation from multiple parties to execute a transaction.

While the multi-signature functionality of the sender’s wallet is quite interesting, transferring assets to a wallet managed on a central exchange is an even bigger story. When investors transfer their digital assets to an exchange, it usually means using the services of one of these centralized platforms, including sales.

As such, the recent influx of Ethereum tokens onto the Binance exchange could have a negative impact on the Ethereum price if Metalfa intends to sell in this context. Since the reason for this decision is still unclear, it remains to be seen whether or not the altcoin will face downward pressure.

Ethereum Price at a Glance

At the time of writing, the Ethereum token hasn’t changed much in the past few hours. Instead, the Ethereum price has continued to stabilize at the $2,600 level, gaining just 0.5% over the past day.

However, the second-largest cryptocurrency is in better shape than it was less than two weeks ago. The Ethereum price has shown good signs of recovery after falling to a multi-month low of $2,200 in early August.