Tron DAO founder Justin Sun transferred a significant portion of his ETH reserve from Lido to Poloniex, sparking Ethereum selloff rumors.
Justin Sun, the founder of Tron DAO, has hinted at a major Ethereum (ETH) selloff following a series of transactions that have garnered significant attention.
Sun unstaked a sizable portion of his staked Ethereum reserve.
Moreover, he transferred a portion of this ETH to Poloniex, a reputable crypto exchange.
Justin Sun Teases Massive Ethereum Selloff
According to data from Peck Shield Alert, the movement of 1,768 ETH (worth approximately $5.9 million) unstaked from Lido captivated onlookers.
Furthermore, the subsequent transfer of 810 ETH, which is estimated to be around $2.7 million, to the Poloniex crypto exchange sparked concerns about an Ethereum selloff.
Ethereum’s 10% price dip in early July has stoked market speculation even further.
The global crypto market valuation experienced an 8% decline as a result of this downturn.
Additionally, Justin Sun’s prospective loss of $66 million at the time was one of the most significant consequences.
The market downturn on July 5 had a significant impact on Sun’s extensive Ethereum holdings, according to a report by Spot On Chain.
Sun amassed a substantial quantity of Ether, totaling 361,137 ETH, through three distinct wallets between February and June 2024.
In February, he acquired 169,604 ETH at an average price of $2,870, 176,117 ETH in April at $3,177, and 15,416 ETH in June at $3,474.
Sun was reportedly earning $58 million from these holdings just a day before the substantial price decline.
Conversely, the market’s abrupt decline on July 5 resulted in a startling $66 million loss, which negated these gains.
At the height of the collapse, Ethereum’s price fell below $2,800.
Although it has since recovered to surpass $3,300 following the launch of new exchange-traded funds (ETFs), this event sparked a “sell the news” reaction among investors.
Moreover, the price of ETH has remained lower than the average value of Sun’s third acquisition, despite the rebound.
Therefore, the most recent Ethereum selloff concerns are not without merit.
This could be a loss mitigation strategy, as Sun typically maintains a strict grip on his ETH.
ETH ETF Outflows
In addition to the intrigue, Ether exchange-traded funds (ETF) flows have been consistently negative.
The Spot Ethereum ETFs experienced outflows totaling $98.3 million on Monday, July 29.
Additionally, Grayscale’s Ethereum Trust (ETHE) was responsible for $210 million in outflows, which contributed to the outflow streak.
However, Blackrock, Fidelity, and Bitwise experienced significant inflows, with $58.2 million, $24.8 million, and $10.4 million, respectively.
Ethereum’s price has remained largely steady despite these conflicting signals.
At present, Ether price is in a state of flux, ranging from $3,300 to $3,400.
On Tuesday, July 30, the price of ETH fell by 1.04% to $3,325.16 at the time of writing, with a market cap of $401 billion.
Moreover, Coinglass reported that the market saw a broader Ethereum selloff, with long liquidations totaling $33.58 million.
Whilst, shorts liquidated around $6.87 million positions.