A recent analysis of Ethereum transactions revealed that the three newly created wallets have withdrawn a total of 86,520 ETH (approximately $150 million worth) from the two major cryptocurrency exchanges, Binance and Kraken, in the past week.
Analysis by LookOnChain showed that three wallets were created on June 12 and June 13, each withdrawing large amounts of ETH from Binance or Kraken.
What is the Reason for Loaded Ethereum Withdrawals?
The first wallet with the address 0x5bA3 pulled 35,860 ETH from Binance and transferred it to a contract address. The second wallet with the address 0x7c82 has withdrawn 27,000 ETH from Binance. The third wallet with the address 0x2c74 drew 23,660 ETH from Kraken.
The reason behind these large withdrawals is unclear, but some think it may be related to a proposal currently under discussion by Ethereum's core developers. The proposal envisages increasing the maximum validator balance from the current 32 ETH to 2,048 ETH per validator.
First published by Michael Neuder, a researcher at the Ethereum Foundation, the proposal aims to address some operational concerns and improve network efficiency. Neuder argued that the current validator limit of 32 ETH forces large-scale staking to run multiple validators if they want to earn returns on any amount greater than that.
He also claimed that increasing the validator balance cap would reduce the number of validators and increase network security.
*Not investment advice.
