- Longling Capital wallet acquired 5,000 ETH, raising its total holdings to 68,064 ETH, showing continued bullish activity.
- The Ethereum Foundation recently transferred 2,500 ETH to Bitstamp, raising speculation about potential market impacts.
Longling Capital, the cryptocurrency fund linked to Cai Wensheng, the founder of China’s Meitu startup, made a significant acquisition of 5,000 ETH. With a value of around $12.34 million, the acquisition takes the combined wallet holdings to an amazing 68,064 ETH, valued at almost $168 million.
Longling Capital has borrowed a large sum—44 million USDT—from the distributed financial platform Aave, indicating their continuous belief in Ethereum despite past obstacles.
A wallet related to #LonglingCapital bought another 5,000 $ETH($12.34M) 20 mins ago.
This wallet holds 68,064 $ETH($168M) and borrowed 44M $USDT from #Aave.#LonglingCapital was liquidated for 93,793 $ETH($114M) when the market crashed in 2022!https://t.co/40efdPkl2A pic.twitter.com/V2sHArcjt1
— Lookonchain (@lookonchain) October 13, 2024
ETH Accumulation Resumes After 2022 Liquidation Setback
This action follows a major incident in 2022 when Longling Capital underwent a mass liquidation during a financial crisis. At that period, the company lost 93,793 ETH, worth $ 114 million.
Though the fund appeared to have adopted a forward-looking approach, the recollection of such a liquidation could have prompted hesitation.
Longling Capital’s purchase points to their positioning for what they see to be a favorable market situation for Ethereum, and their borrowing from Aave confirms this positive view even more.
Deeper investigation into their activity revealed that the wallet had been essentially idle for almost two years until lately. It started its present sequence of strategic movements in August when it moved 20,000 ETH to various addresses.
This change in activity has sparked again interest in the trading strategy of the fund and its consequences for the larger market. Many are reading Longling Capital’s activities as evidence of faith in Ethereum’s future performance, particularly given the crypto market is negotiating a time of both opportunity and uncertainty.
Conversely, as we reported a few days ago, Ethereum Foundation moved on its own market action by giving Bitstamp 2,500 ETH. Along with operational requirements for the move, this one has spurred rumors on possible effects on the market.
Furthermore, the next Ethereum Improvement Proposal (EIP-7781) intends to increase transaction speeds by up to 50%, therefore improving the general efficiency and reducing the network transaction costs.
Meanwhile, as of writing, ETH is trading about $2,533.50, which reflects a 4.64% increase over the last 30 days and a 2.87% climb over the last 24 hours.
