The recent surge in Ethereum’s price has brought optimism to traders, but a looming threat from the defunct crypto lender, Celsius Network, has cast a shadow over its momentum.
Celsius’ Ongoing Exodus
Spot On Chain’s latest data reveals Celsius Network’s relentless sell-off spree, with a staggering deposit of 67,500 ETH to Coinbase Prime, totaling approximately $156.5 million over just two days. Since November 13th, 2023, Celsius has transferred a cumulative 847,626 ETH (roughly $1.9 billion) to various exchanges.
— Spot On Chain (@spotonchain) February 1, 2024
Impact on Ethereum’s Price Dynamics
The sizable sell-offs by Celsius have adversely affected Ethereum’s price, with a 2.4% decline observed in the past 24 hours. This correlation underscores the immediate influence of Celsius’ transactions on Ethereum’s market value.
Celsius’ consistent liquidation of ETH holdings poses several threats to Ethereum. Firstly, the influx of ETH into the market amplifies selling pressure, potentially triggering short-term price fluctuations and volatility. Moreover, Celsius’ actions might deter new investors from holding ETH, evident from the declining network growth.
NFTs and Ethereum’s Network Activity
While Ethereum’s gas usage remains stable, there’s a noticeable decline in NFT trades. This shift in user behavior within the Ethereum-based NFT space hints at evolving market dynamics or changing preferences.
As Ethereum navigates through its price rally, Celsius Network’s massive ETH sell-offs stand as a formidable challenge. The repercussions of these actions extend beyond immediate price impacts, potentially reshaping investor sentiment and usage patterns within the Ethereum ecosystem.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.