Tron co-founder Justin Sun withdrew 30,000 ETH, worth approximately $56 million, to two addresses via liquidity service provider Lido on July 10, according to Lookonchain. reveal. After his move, his stake in Ethereum via Lido fell to 263,294 ETH, or $491.6 million at spot prices.
Justin Sun Divests From Ethereum
Lookonchain, a blockchain analytics platform, reports that between February 25 and 27, Sun raised 288,100 ETH, or $538 million, and secured 5,194 ETH, or $9 million. This translates to an average daily profit of 38 ETH, or $72,000, according to the annual percentage return (APY) of about 4.87% offered by Lido on Ethereum makers.
The reasons behind Sun’s withdrawal of 30,000 ETH from Lido are not clear. This could indicate his intention to sell some ETH, move to a different staking platform, or even run his own Ethereum validation node.
Despite this transfer, Sun remains one of the largest bets on the Lido, accounting for more than 9% of all accumulated ETH. While Sun’s decision to remove and move the coins may be a cause for concern, ETH prices are flat as of writing on July 10 and near $1,900.
Contrary to concerns before the Shanghai upgrade in mid-April, the number of users pinning ETH is still on the rise. trackers Displays More than 21 million ETH have been locked by over 657,000 validators as of July 10th.
With the implementation of the Shanghai Upgrade, ETH holders who staked at least 32 ETH on the Beacon Chain as of December 2020 can withdraw their assets. Despite previous concerns that more coins would be withdrawn and sold on spot markets, affecting ETH prices, more validators and more coins are being locked into the Beacon Chain and other staking solutions.
Will the SEC discourage coin accumulation?
Lido, a leading provider of ETH, is the largest decentralized finance (DeFi) protocol by total value locked (TVL), according to devilama. As of July 10, Lido managed more than $14.6 billion in assets, most of which were in ETH.
Over $14.5 billion in ETH has been authorized and locked through Lido infrastructure. On Lido, users can share their ETH and other supported coins without having lock-up periods or meeting high requirements, making it an attractive option for some investors.
In lawsuits filed against cryptocurrency exchanges Binance and Coinbase in early June, the US Securities and Exchange Commission (SEC) alleged that some Proof of Stake coins, including Cardano’s ADA and Algorand’s ALGO, were unregistered securities.
After this valuation, its price plummeted, even affecting ETH. This is partly because Ethereum is now a proof-of-stake network after moving from a proof-of-work algorithm and uses the same consensus system as rival smart contract platforms that have been accused of issuing unregistered securities. The situation was exacerbated by Gary Gensler’s failure to explain whether ETH is a utility like Bitcoin.
Cover image from Canvas, chart from Tradingview