- Whale Alert’s twitter detected a $633 Million Bitcoin transfer
- Transaction only cost 27 cents to execute
On April 1st, a user transferred over 100,000 Bitcoin, worth over $633,000,000 at the time.
Users who hold large amounts of cryptocurrency are known as cryptocurrency whales as their holdings can affect prices significantly if they decide to liquidate – like a whale making waves and ripples as it swims.
On April 1st, a user transferred over 100,000 Bitcoin to an unknown wallet. At the time, the transaction’s value surpassed a staggering $600 million. What’s more, is that the transaction only cost 27 cents! Much cheaper and quicker than a traditional wire transfer.
The transaction was later identified as an internal transfer for crypto custody company Xapo. Crypto custody companies hold large amounts of cryptocurrencies safely for institutional investors.
Put briefly, the magnitude of this transaction wasn’t special because of the sender, but rather because of the transaction fees.
Transaction fees fuel transactions on the blockchain. These fees help verify and process transactions in a decentralized and transparent matter. This Bitcoin transaction cost only 27 cents in fees, while the total worth of the transaction was over $600,000,000.
Why is this Significant?
Large cryptocurrency movements are significant for many reasons. Large movements often foreshadow the market. During a bull market, dormant whale accounts typically become active, signifying a major sell-off. As a result, whale transactions may signify major market dumps and flat crashes.
Benefits of Transacting via Cryptocurrencies
In addition to market signals, large cryptocurrency transactions show the adaptability and scale of blockchain. Bitcoin is known to be one of the slowest and expensive blockchains to transact on. Even so, the transaction fee for a transaction worth north of half-a-million dollars was only 27 cents.
Many blockchains like Ethereum offer lower fees and quicker transactions. On the Ethereum blockchain, a transaction will only cost $0.007, far cheaper than Bitcoin, which is already cheaper than a wire transfer.
Transactions on the blockchain also offer unparalleled transparency and security. These transactions will always be viewable by anyone as the blockchain is immutable and unalterable.
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