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Highlights
- Tron founder Justin Sun recently unstaked a significant Ethereum reserve.
- He also transferred a substantial portion to the Poloniex crypto exchange.
- This move has triggered concerns of a selloff as Ethereum faces uncertainty amid ETF outflows.
Justin Sun, the founder of Tron DAO, has hinted at a significant Ethereum (ETH) selloff following a series of transactions that have drawn considerable attention. Sun unstaked a sizeable portion of his staked ETH reserve. Furthermore, he went on to transfer a part of this ETH to Poloniex, a prominent crypto exchange.
Justin Sun Teases Massive Ethereum Selloff
Onlookers were particularly intrigued by the movement of 1,768 ETH (worth approximately $5.9 million) unstaked from Lido, accoeding to data by Peck Shield Alert. Furthermore, the subsequent transfer of 810 ETH, valued at around $2.7 million, to the Poloniex crypto exchange raised speculations of an Ethereum selloff.
The early July price drop for Ethereum, which saw a 10% decline, has further fueled market speculation. This downturn contributed to an 8% drop in the global crypto market cap. Moreover, one of the most notable impacts was a potential $66 million loss for Justin Sun at the time.
According to a report by Spot On Chain, Sun’s extensive Ethereum holdings had been severely impacted by the market downturn on July 5. Between February and June 2024, Sun amassed a substantial amount of Ether, totaling 361,137 ETH through three separate wallets.
His acquisitions included 169,604 ETH in February at an average price of $2,870, 176,117 ETH in April at $3,177, and 15,416 ETH in June at $3,474. Just a day before the significant price drop, Sun was reportedly enjoying a $58 million profit from these holdings.
However, the market’s sharp decline on July 5 turned these gains into a staggering $66 million loss. At the height of the downturn, Ethereum’s price plummeted below $2,800. While it has since rebounded to above $3,300 following the launch of new ETFs, this event triggered a ‘sell the news’ reaction among investors.
Moreover, despite the rebound, the ETH price has remained lower than the average value of Sun’s third acquisition. Hence, the latest Ethereum selloff concerns aren’t groundless. This could be a loss mitigating move as Sun generally holds tight on his ETH.
Also Read: 21Shares Employs Chainlink to Verify Ethereum ETF Reserves
ETH ETF Outflows
Adding to the intrigue, Ether exchange-traded funds (ETF) flows have been persistently negative. On Monday, July 29, the Spot Ethereum ETFs recorded outflows amounting to $98.3 million. Moreover, Grayscale’s Ethereum Trust (ETHE) alone accounted for $210 million in outflows, accelerating the outflow streak.
However, notable inflows were observed in Blackrock, Fidelity, and Bitwise, registering $58.2 million, $24.8 million, and $10.4 million, respectively. Despite these mixed signals, Ethereum’s price has been relatively stable. The Ether price is currently fluctuating between $3,300 and $3,400.
At press time, the ETH price dropped 1.04% to $3,325.16 on Tuesday, July 30 with a market cap of $401 billion. Moreover, a broader Ethereum selloff was noted in the market with $33.58 million long liquidations, according to Coinglass. Whilst, shorts liquidated around $6.87 million positions.
Also Read: Ethereum Client Releases Important Stability Fix Ahead Pectra Upgrade
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