News

Breaking: Three Arrows Capital Dumps $33 Mln Staked Ethereum (stETH)

Venture capital firm Three Arrows on Tuesday swapped about $33 million worth of Lido Staked Ethereum (stETH) on DeFi platform Curve. 
Published by
Breaking: Three Arrows Capital Dumps $33 Mln Staked Ethereum (stETH)

Crypto hedge fund Three Arrows on Tuesday swapped about $33 million worth of Lido Staked Ethereum (stETH) for Ethereum on DeFi platform Curve.

The move comes as stETH prices diverge further from ETH prices in secondary markets, pressuring traders using the DeFi token as collateral.

Three Arrows is the second major holder of stETH to dump the token since last week. Crypto trader Alameda Research had swapped about $1.5 billion of the token– all of its holdings- for ETH last week. stETH’s divergence from ETH can likely be tied to that trade, which also occurred on Curve.

The DeFi token is currently trading at $1,103.15, compared with ETH’s price of $1,173.96.

Advertisement

Three Arrows still has more stETH to dump

While the $33 million swapped by Three Arrows represents a substantial amount of the firm’s stETH holdings, Three Arrows still holds about $22 million of the token in one of its wallets, according to crypto commentator @mhonkasalo.

On-chain data shows Three Arrows has been consistently offloading stETH since the past month. The venture capital firm now appears to be transferring the ETH gained into lending pools on AAVE and Lido.

While it is unclear how much total exposure Three Arrows has to stETH, its recent transactions suggest the firm is trying to cull this exposure. But its swaps, along with Alameda, have contributed to a major imbalance in Curve’s stETH liquidity pool.

About 80% of the pool now consists of the token, which may present a further downside for prices.

Advertisement

How is Staked Ethereum affecting markets?

By itself, stETH has little impact on ETH prices, or the broader market. Even as its price drops in secondary trade, the token can still be redeemed for one ETH when the merge goes live.

But uncertainty over the token is causing panic selling of ETH, and other cryptos. Even worse, its use as a collateral by major crypto lending platforms, particularly Celsius, is threatening to liquidate billions in positions. 

Celsius faces a liquidity crunch due to the drop in stETH prices, which is affecting its leveraged position.

Advertisement

Share
Ambar Warrick

With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn't trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns. You can reach him at ambar@coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

How the Crypto Market Could React to the Next Fed Meeting on October 29?

The crypto market has, for a while now, been pricing a potential 25 basis points…

October 23, 2025
  • News

$1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP

Rowe Price has filed for its first actively managed crypto exchange-traded fund (ETF). It is…

October 22, 2025
  • News

Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions

Standard Chartered analyst Geoff Kendrick has predicted that the Bitcoin price could suffer a significant…

October 22, 2025
  • News

Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7

Crypto ownership is a topic that has been discussed across major forums globally in the…

October 22, 2025
  • News

Robinhood Lists Binance Coin as BNB Outperforms BTC, ETH, SOL YTD By Over 30%

Crypto exchange Robinhood has listed the Binance coin for spot trading for its U.S. customers.…

October 22, 2025
  • News

Bitget Partners With Google Developer Group On Hackathon To Support AI Innovation

Bitget, a leading crypto exchange in the world, has joined forces with Google Developer Group…

October 22, 2025