Leading altcoin Ethereum (ETH) has seen massive price drop recently. This has tremendously affected the value of the assets of crypto funds holding ETH.
“Funds holding Ethereum are at serious loss”
Ethereum, the second-largest cryptocurrency by market cap, has suffered a massive drop in price. Then, investors in the asset class have recorded massive losses over the past few weeks. According to Larry Cermak of The Block, more than 100 Ethereum wallets belonging to top crypto funds have seen a large percentage of their ETH values skyrocket in the past three months.
In a recent tweet, Cermak said that these addresses belonging to different crypto funds held a total of $14.8 billion in March 2022. However, when he shared the tweet, the value dropped to $2.2 billion as of yesterday. This shows that the value of ETH held by crypto funds has dropped 85% in the last three months.
While the data is not comprehensive, Cermak noted that it is sufficient to show some key trends in how these crypto funds are performing. Cermak made the following statement:
Also, the possibility that these crypto funds are transferring ETH to exchanges is something to keep in mind. The difference is ignored in this example. But it’s still a relevant dataset.
Larry Cermak is also not forgetting the possibility that these funds may have released some of their ETH. However, he adds, the majority of these are “earned tokens that have since lost 90% of value.”
Celsius and 3AC push leading altcoin price to bottom
It’s no longer news that Ethereum has had its share of serious price drops over the past two weeks. The altcoin, which traded around $1,900 on June 6, 2022, lost nearly $900 over the weekend. At press time, it is trading around $1,100.
As you can follow on Kriptokoin.com, the entire crypto market reacts negatively to increasing inflation. However, some events are considered important factors that lower Ethereum prices. Last week Celsius Network announced that it has stopped withdrawing, clearing and transferring funds due to adverse market conditions.
Celsius users thought it was nothing serious. However, the lending platform transferred 104,000 ETH to the popular cryptocurrency exchange FTX. This was a huge sell-off and put an extra load on the already ailing ETH price. This hurt the Ethereum price as the asset class drastically plummeted almost instantly.
Three Arrows Capital (3AC) has begun to face liquidation amid the drop in ETH prices. While this was happening, Ethereum investors were still trying to deal with the unfortunate development. Crypto analytics data provider Nansen noted that an address owned by 3AC paid off $264 million (234,458 ETH) worth of Aave debt. The developments sparked a backlash from Billy Marcus, the co-founder of Dogecoin. DOGE founder said:
Suppose we have a new bull run after this crypto winter. Can we all collectively learn from the failures of Celsius, LUNA and 3AC?
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