Ethereum's price may face some turbulence as Tron (TRX) founder Sun Yuchen withdrew up to $209 million in stakes from Ethereum's liquidity decentralized staking platform Lido Finance. Compared to top cryptocurrencies like Bitcoin (BTC) and Dogecoin (DOGE), Ethereum's price performance has been relatively lackluster, consolidating after surging to $4,000 and struggling to rise further. Due to the potential for more sell-offs, Ethereum's price could plummet if Sun Yuchen decides to sell more tokens.
Sun Yuchen sells ETH
The latest report from the AI-driven crypto platform Spot On Chain shows that Sun Yuchen recently applied to withdraw approximately $209 million worth of 52,905 ETH tokens from Lido Finance. According to on-chain data, this massive withdrawal is part of Sun Yuchen's ETH reserves accumulated between February and August 2024.
Spot On Chain reveals that the total amount of Ethereum purchased by Sun during this period is 392,474 ETH tokens, worth $1.19 billion. All these tokens were purchased through three wallet addresses at an average price of $3,027. Currently, the total profit gained by the Tron founder since the purchase has reached $349 million, an increase of 29% over the purchase price.
Interestingly, on October 24, Sun Yuchen redeemed over $131 million worth of 80,251 ETH tokens from Lido Finance. Four days later, he transferred all the funds to Binance, the world's largest cryptocurrency exchange. This striking move came before a significant 5% drop in Ethereum's price in mid-October, which could lead to a loss for Sun Yuchen.
It is not surprising that this is not Sun Yuchen's first time selling Ethereum. Spot On Chain revealed earlier this month that the Tron founder has been cashing out his holdings of Ethereum during the market rebound.
In November, Sun Yuchen deposited 19,000 ETH worth $60.83 million into the cryptocurrency exchange HTX. Additionally, after HTX's price broke $4,000 in the past week, he transferred another 29,920 ETH worth $119.7 million to HTX. These are just a few of the transactions this Tron founder has made with ETH in the past month.
Given Sun Yuchen's history of large asset movements, further sell-offs could impact an already fragile Ethereum market. However, the lingering question remains whether this Tron founder will continue to offload Ethereum in large quantities.
Is an Ethereum price crash imminent?
Although Sun Yuchen has not publicly commented on his recent large-scale withdrawals of Ethereum, the scale and timing of these trades could raise concerns about the future trajectory of altcoins. Historically, large-scale ETH liquidations can trigger price crashes due to increased sell-off pressure.
As Ethereum's price remains unstable and is expected to achieve stronger gains, further large-scale sell-offs of ETH could exacerbate market volatility, especially if other investors or whales follow suit. Currently, Ethereum's price appears to be performing well, having risen over 7% in the past seven days and 28% in the past month, according to CoinMarketCap data.
