Solana whale continues $84M dump with $2.8M sale

A Solana whale that had regularly sold tokens since January deposited almost $2.8 million into several exchanges, bringing the investor’s total tokens sold this year to $84 million.

On Aug. 13, blockchain data analysis company Lookonchain spotted a Solana (SOL) wallet dumping tokens weekly since Jan. 15. According to the data firm, the whale has transferred at least 594,000 SOL tokens to Coinbase, Binance and OKX this year. 

The tokens are worth about $84 million in total, as SOL’s price hovers at $144.30. The whale sold tokens at least once per week, with the latest sale being a 20,000 SOL (about $2.8 million) token transaction. 

Ethereum whale on $154 million dumping spree

Apart from the Solana holder, another whale linked to the Ethereum initial coin offering (ICO) has been offloading tokens for over a month. On Aug. 12, Lookonchain pointed out that the Ether (ETH) whale deposited $13.2 million in ETH into OKX. 

The whale has been selling tokens since July 8. Its total number of tokens deposited to OKX is $154 million, and the funds were deposited at an average price of $3,176. The wallet received 1 million ETH during the Ethereum ICO.

Despite the recent sale, another whale has taken the opposite position with a similar amount. On the same day, an Ethereum wallet scooped up 5,000 ETH, adding about $12.8 million to their portfolio.

Related: Whale buys nearly $13M of Ether, but price needs to reclaim $2.7K for next leg up

Dollar-cost averaging strategy in crypto investing

Instead of selling their tokens in a lump sum transaction, the whales employed what the investing world calls the dollar-cost averaging (DCA) strategy. The DCA strategy is a popular method for crypto investing, which features periodically buying or selling crypto assets instead of doing a bulk transaction at one time. 

Given the difficulties in estimating the top or bottom of prices, experienced traders use the DCA method to invest in crypto. The investment strategy makes a holder less affected by emotions, as DCA investors think about long-term prospects. 

While the method is constantly advertised for buying crypto, it is also used when selling tokens to take profits.

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