Golem, a decentralized computing platform that raised a significant amount of Ethereum (ETH) during its initial coin offering (ICO) in 2016, recently moved millions of dollars worth of ETH tokens to various cryptocurrency exchanges.
This substantial transfer comes amid a broader market downturn for cryptocurrencies.
According to on-chain data tracked by blockchain security and market intelligence firm Arkham, Golem transferred 36,000 ETH tokens, valued at over $115 million, to multiple crypto exchanges over a 37-day period.
The transfers went to major platforms such as Binance, Coinbase, and Bitfinex.
Each transaction moved approximately $10 million worth of ETH, showcasing the scale of these transfers.
As of now, Golem holds about 231,400 ETH, valued at around $656 million.
Initially, Golem’s ICO raised 820,000 ETH, which was worth $8.7 million at the time, with Ethereum prices hovering around $10.2 per token .
Golem aims to revolutionize the AI industry through a peer-to-peer marketplace for computing power. It uses its native token, GLM, to facilitate network transactions.
ETH worth $72 million was sold in the past three days
Recent data from Lookonchain reveals that Golem sold 24,400 ETH, worth approximately $72 million, over the past three days.
These sales occurred on Binance, Coinbase, and Bitfinex.
Following these transactions, Golem’s current ETH holdings stand at roughly 127,634 ETH, valued at around $372 million based on current prices .
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Market context and impact
The timing of Golem’s ETH transfers coincides with a broader downturn in the cryptocurrency market.
Over the weekend, the market experienced a temporary bounce, with Bitcoin recovering from lows of $54,000 following a significant sell-off that resulted in the liquidation of millions of dollars in crypto bets.
This rebound also saw altcoins, including Ethereum, trading higher. Ethereum, which had dropped below the $3,000 mark, saw a modest recovery and was trading up by about 1.2% over the past 24 hours at the time of writing .
However, despite this brief recovery, Ethereum remains down by 12% over the past week and 17.5% over the past 30 days.
Similarly, Golem’s native token, GLM, has experienced a decline, dropping nearly 10% in the past week and over 29% in the past month .
The large-scale ETH transfers by Golem during this period of market weakness likely contributed to the downward pressure on Ethereum’s price.
Investors might see Golem’s actions as a signal that the price of ETH is poised to drop, prompting them to sell their own holdings to prevent losses. This could create a snowball effect, driving the price down further.
The sell-off of these tokens was not an isolated event. AMBCrypto’s analysis of Santiment’s data showed that large addresses were losing interest in ETH, with their holdings declining.
Additionally, retail interest had waned over the last few days. This suggested a potential lack of demand across various investor segments, amplifying the selling pressure.
Historically, significant crypto transfers to exchanges often precede a decline in prices, as seen with the recent example of the German government’s BTC sales causing Bitcoin’s price to fall from above $60,000 to lows of $54,000 .
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