Tron founder Justin Sun has set the crypto community on edge after announcing that he plans to acquire approximately 53,000 Ether (ETH).
Tron founder Justin Sun has set the crypto community on edge after it recently came to light that he plans to acquire approximately 53,000 Ether ETH $3 907 24h volatility: 0.5% Market cap: $470.60 B Vol. 24h: $34.10 B . Such a large transaction, worth around $209 million, is expected to have a telling impact on Ethereum’s price, and the market already anticipates this.
Recently, Ethereum came within a touching distance of the $4,000 mark. That was shortly after reports broke that Sun had sold 29,920 ETH, worth roughly $119.7 million, to the HTX exchange. While the sell-off may have initially brought some panic, the Ethereum market has since returned to its earlier buzz. Besides, Sun’s latest decision to buy more ETH is also expected to influence the asset’s value to rise even further.
According to blockchain analytics platform Spot On Chain, Sun withdrew 52,905 ETH from the decentralized finance (DeFi) platform Lido. However, the move is seen as part of his ongoing strategy of accumulating large amounts of Ethereum.
The platform confirms that Sun spent an estimated $1.19 billion between February and August 2024 to amass 392,474 ETH. He also reportedly used three separate wallets to carry out those transactions.
From the look of things, Sun’s accumulation strategy looks geared towards profit-making. As things stand, his Ethereum holdings already give him an impressive return on investment (ROI) of 29%. This translates to a profit of approximately $349 million.
As of publication, the Ethereum market was seen experiencing a 2.36% surge in the last 24 hours, with ETH prices settling near $3,951. The cryptocurrency has gained 27% over the past month, adding to the optimism among traders and investors.
As if that is not enough, CoinGlass data also shows a 5% increase in Ethereum Futures Open Interest. While this suggests that investors are quite confident in the crypto at this moment, it also adds to the positive sentiment in the market.
Moreover, popular analyst Ali Martinez has also observed that activity among ETH whales is picking up. Martinez claims that these whales have been buying aggressively since the price surpassed $3,300.
With all these said, it is clear that there are numerous positive indicators as far as Ethereum is concerned. However, some market observers remain skeptical about the moves of Justin Sun. They feel that his accumulation and subsequent sell-offs could trigger price volatility.
Be that as it may, many also believe that the growing demand among institutional and retail investors will stabilize the market.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
