Kraken Sees Major ETH Inflow as ICO Whale Chooses Staking Over Selling
In a striking display of contrasting market sentiment, the Ethereum ecosystem witnessed two monumental whale movements on December 3, 2025. The headline event involves a long-dormant participant from Ethereum's 2014 Initial Coin Offering (ICO) era, who, after a decade of inactivity, reactivated a wallet containing 40,000 ETH—valued at approximately $120 million. Rather than cashing out, this anonymous whale demonstrated profound confidence in Ethereum's future by deploying the entire sum into the network's proof-of-stake consensus mechanism. This move involved setting up 1,250 individual validators, a process that effectively locks the funds for an extended period and signals a strategic, long-term commitment to the network's security and growth. Such a substantial stake delegation is interpreted by market analysts as a powerful bullish signal, suggesting that early, patient capital sees enduring value in Ethereum's roadmap and its transition to a full staking-based economy. Simultaneously, the market observed a countervailing action that introduced a note of caution. A separate, large Ethereum holder transferred a significant cache of 10,176 ETH directly to the major cryptocurrency exchange Kraken. Transactions of this magnitude to centralized exchanges are typically precursors to selling activity, as they provide the liquidity and order books necessary for large-scale disposals without excessively impacting the market price on-chain. This transfer has immediately sparked concerns among traders about impending sell pressure, which could temporarily dampen ETH's price momentum. The juxtaposition of these two events—one a vote of confidence through capital lock-up, the other a potential preparation for liquidation—vividly illustrates the current dichotomy within the Ethereum holder base. It underscores the ongoing tension between long-term believers capitalizing on staking rewards and network participation, and shorter-term players or those seeking to realize profits amid the asset's substantial appreciation since the ICO period. This activity around Kraken, a pivotal liquidity hub, highlights its critical role as the barometer for institutional and whale-sized market moves, where deposit flows often telegraph the next major shift in supply dynamics.
Ethereum ICO Whale Returns After Decade, Locks $120M in Staking
A dormant ethereum address from the 2014 ICO era suddenly reactivated, moving its entire 40,000 ETH holdings—worth approximately $120 million—into staking. The whale deployed 1,250 validators, signaling long-term commitment to the network rather than liquidating positions.
Meanwhile, another large holder transferred 10,176 ETH to Kraken, sparking concerns about potential sell pressure. The divergent moves highlight contrasting market strategies among major ETH stakeholders during a period of network transition.
Kraken Acquires Backed Finance to Accelerate Tokenized Stock Expansion
Kraken's acquisition of Backed Finance marks a strategic push into tokenized equities, integrating xStocks' $10 billion trading volume infrastructure under one platform. The MOVE signals growing institutional demand for blockchain-based settlement of traditional securities.
"This is bigger than giving people exposure to U.S. equities," said Kraken co-CEO Arjun Sethi, framing the deal as foundational for programmable capital markets. Backed's regulatory-compliant issuance system will now scale through Kraken's global exchange network.
xStocks currently tokenizes 60+ equities and ETFs across solana and Ethereum, with plans to expand to TON, Tron, and BNB Chain. The undisclosed transaction accelerates Wall Street's convergence with crypto infrastructure.
