The cryptocurrency market has been attempting a price recovery after crashing hard in the last few days. According to data from crypto market intelligence platform Santiment, Ethereum sharks and whales have been the leading contributors to the price surge with their accumulation.
Per Santiment’s data, Ethereum addresses holding between 100-1 million Ether (ETH) tokens added 657,390 ETH to their bags in the past 24 hours since the dip. This is roughly worth $783 million currently, the analysis noted.
Their addition also equals 0.54% of the circulating supply of ETH, making the day the largest single-day buys since Sept. 5, Santiment added.
The effect of the sharks’ and whales’ buying spree has already been seen in the ETH market. The price of ETH recovered from an intraday low of $1,086 to reach a high of $1,293 before retracing downwards to be trading at around $1,265 at the time of writing. This is a 7.31% markdown in the last 24 hours, according to data from CoinMarketCap.
The market crash has been largely thanks to events playing out with the crypto exchange FTX. The Sam Bankman-Fried-owned exchange has been revealed to be in a deep liquidity crisis owing to a bailout it gave to its sister company Alameda Research denominated in its native FTT token.
The current situation of FTX leaves the crypto market in more danger
It initially appeared that the market would get some respite as Binance revealed plans to acquire FTX and help protect its users fully. However, this hope has been dashed as Binance has pulled out of the agreement citing issues with FTX beyond remedy.
“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance said in a tweet.
According to a CNBC report, SBF has told investors that FTX is facing a shortfall of up to $8 billion from withdrawal requests. The CEO still seeks to raise money from other potential investors to rescue the exchange.
While it is unclear who may attempt to step in to fund FTX’s rescue, the shockwave from the situation has seen the price of Bitcoin (BTC) drop to $15,702, its lowest since November 2020. The capitalization of the entire market also dropped massively to around $830 billion, falling 3.55% in the last 24 hours alone.