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The Ethereum price could face some turbulence Justin Sunthe founder of Tron (TRX), has raised a whopping $209 million from Lido Finance, a liquid decentralized staking platform for Ethereum. Compared to the top cryptocurrencies such as Bitcoin (BTC) and Dogecoin (DOGE)The Ethereum price performed relatively subdued, rising to $4,000 before consolidating and struggling to move higher. With the possibility of more sales, Ethereum could see its price fall when Sun decides to dump more coins.
Justin Sun dumps ETH
New reports from Spot On Chain, an AI-powered crypto platform, revealed that Sun recently applied to withdraw as many as 52,905 ETH tokens worth approximately $209 million from Lido Finance. According to the on-chain data, this massive withdrawal was part of the ETH supply that Sun would have accumulated between February and August 2024.
Spot On Chain has revealed that the total amount of Bought Ethereum Sun within this period amounted to 392,474 ETH tokens, worth $1.19 billion. All of these tokens were purchased through three wallet addresses at an average price of $3,027. Currently, the total profits made by the Tron founder since his purchase are $349 million, representing a 29% increase over the purchase price.
Interestingly, on October 24, Sun had withdrawn a whopping 80,251 ETH tokens, worth over $131 million, from Lido Finance. Four days later he transferred the full amount to Binancethe world’s largest crypto exchange. This remarkable move occurred just before Ethereum’s price fell sharply by 5% in mid-October. resulted in a loss for Sun.
Unsurprisingly, this isn’t the first time Sun has dumped Ethereum. Spot On Chain revealed earlier this month that the Tron founder had been cashing out his Ethereum holdings during the market rally.
In November, Sun deposited 19,000 ETH worth $60.83 million to HTX, a crypto exchange. Besides, he transferred 29,920 ETH was revalued at $119.7 million for HTX after its price surpassed $4,000 in the past week. These are just a few of the trades that Tron’s founder has made with ETH over the past month.
Given Sun’s history of large-scale asset movements, further sell-offs could impact the already fragile Ethereum market. Nevertheless, the question remains whether Tron’s founder will continue his business Ethereum dumping wave.
Ethereum price crash coming?
While Sun has not publicly commented on his recent large-scale Ethereum withdrawalsthe size and timing of these transactions could pose a problem for the altcoin’s future trajectory. Historically, large ETH liquidations have caused a price crash increasing sales pressure.
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Now that the price of Ethereum is still unstable aim for a stronger upward rallyfurther large-scale ETH dumps could worsen market volatility, especially if other investors or whales follow suit. For now, the price of Ethereum seems to be perform wellrecording an increase of more than 7% in the last seven days and a rise of 28% in the last month, according to CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
