Large cryptocurrency wallets that have recently suffered significant losses on Ethereum are restructuring their holdings, moving away from volatile tokens and increasing exposure to stablecoins and tokenized gold, according to on-chain tracking data.
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The address gained attention after an aggressive Ethereum purchase failed late last year. From November 3, 2025 to November 7, 2025, wallets spent approximately $110 million to acquire 31,005 ETH at an average price of $3,581.
When the price fell, the position was unwound. Almost the entire holding was sold for approximately $92.19 million, locking in a loss of nearly $18 million within two weeks. At the current price of around $3,020, the same Ethereum stack would be worth about $93.6 million.
Leaving the Ether after a costly withdrawal
Based on reports from blockchain monitoring platforms, this decline signaled a clear change in behavior. This wallet, once closely tied to Ethereum, no longer holds large directional bets on that asset. Instead, balances are spread across cash-like tokens and goods. The move reflects caution rather than an attempt to quickly recoup losses.
An unknown whale who lost $18.8 million in $ETH in just two weeks has abandoned $ETH and rotated it to #gold.
Whale spent $14.58 million to buy 3,299 $XAUT for $4,421 in the last 7 hours. https://t.co/hit6agWmHd pic.twitter.com/X7k94zV0iQ
— Lookonchain (@lookonchain) January 2, 2026
Gold purchases show a preference for lower volatility
According to on-chain records, this address began building a position in XAUT, Tether’s tokenized gold product. Since Friday, the wallet has spent $14.58 million in USDT to purchase 3,299 XAUT in multiple transactions.
The average purchase price came to nearly $4,421 per token. This was not the first time I had purchased gold. The smaller XAUT acquisition took place about three weeks earlier, on December 13th. As of the latest data, the wallet holds 3,386 XAUT tokens worth approximately $14.92 million.
The broader portfolio now totals nearly $91 million. Approximately $58 million will be stored in USDT, another $18 million in USDC, and the rest will be split between XAUT and reduced Ethereum balances. This configuration represents capital protection rather than a high-risk position.
Metals will outperform cryptocurrencies in 2025
Last year’s earnings help explain the change. According to the report, Bitcoin fell by 6% in 2025, while Ethereum fell by 11%. During the same period, gold soared more than 60%, and silver soared an additional 147%.
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Major stock indexes such as the S&P 500, Dow Jones, and Nasdaq 100 also performed better than most of the crypto market. Given these results, some investors seem comfortable owning assets related to metals and cash.
Meanwhile, analysts at asset management firm VanEck point out that 2026 is the year when the crypto market could recover. Their view stands in contrast to the current movement of large wallets moving towards stablecoins and gold-linked tokens.
The disparity shows how uncertain sentiment remains even after a year in which metals and traditional assets delivered stronger gains than leading cryptocurrencies.
Featured image from Unsplash, chart from TradingView
