Ethereum

Sonic

when

Read

The founder of TRON, Justin Sun, has applied to withdraw 52,905 ETH, worth $209 million, from Lido Finance. This could affect Ethereum’s prices, says historical data. 
The withdrawal has been part of a larger Ethereum (<a rel="" href="https://crypto.news/price/ethereum/">ETH</a>) accumulation strategy under which Sun allegedly purchased 392,474 ETH at an average price of $3,027, now showing an estimated profit of $349 million.&nbsp; 
This is not the first time that Sun has withdrawn large chunks of ETH. On Oct 4, 2023, Sun withdrew unstaked 80,253 ETH, coming around $131 million from Lido, and moved it to Binance within four days, around mid-October. Soon after, a 5% drop was observed in ETH prices. Analysts wonder if Sun will employ something similar when withdrawn assets are ‘delivered’ to exchanges for possible sell-offs.&nbsp; 
The $209 million withdrawn from Lido Finance is noteworthy because it stresses the magnitude of Lido’s importance to Ethereum’s <a rel="" href="https://crypto.news/buterin-outlines-next-steps-for-ethereums-proof-of-stake-evolution/">Proof-of-Stake</a> infrastructure. As a liquid-staking protocol, Lido solves traditional staking problems, resource inaccessibility, and illiquidity by allowing users to stake ETH and remain liquid with traded stealth tokens. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Justin Sun (<a href="https://twitter.com/justinsuntron?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">@justinsuntron</a>) applied to withdraw 52,905 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$ETH</a> (now $209M) from <a href="https://twitter.com/hashtag/LidoFinance?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">#LidoFinance</a> an hour ago. This is part of the net 392,474 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$ETH</a> he allegedly bought at ~$3,027 ($1.19B) via 3 wallets from Feb-Aug, now having an est. total profit of $349M (+29%). Note that on Oct 4,… <a rel="nofollow" href="https://t.co/r5z7l8YSUq" target="_blank">https://t.co/r5z7l8YSUq</a> <a rel="nofollow" href="https://t.co/GAalq1imjO" target="_blank">pic.twitter.com/GAalq1imjO</a>— Spot On Chain (@spotonchain) <a href="https://twitter.com/spotonchain/status/1868522021594030142?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">December 16, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<a rel="" href="https://crypto.news/grayscale-launches-lido-dao-and-optimism-trust/">Lido</a> enables more than 30% of all staked ETH on the network, making it one of the backbones of Ethereum’s PoS mechanism. Big withdrawals such as <a rel="" href="https://crypto.news/crypto-market-bitcoin-justin-sun-backs-wlfi-recap/">Justin Sun</a>‘s withdrawal raise questions about staking liquidity and possible market effects. Though Lido’s <a rel="" href="https://crypto.news/binance-labs-invests-in-bitcoin-liquid-staking-project-lombard/">liquid staking</a> solution does make tokens more accessible, the fear of sudden large-scale withdrawals reveals a critically vulnerable point in staking protocols. Such moves can fuel fears of reduced liquidity. One such incident can be traced back to Aug. 5 of this year, when withdrawals, possibly by whales, dropped ETH’s price from $3317 to $2419. 
 You might also like: <a rel="" href="https://crypto.news/chief-of-south-korean-stock-exchange-says-crypto-should-be-institutionalized-quickly/"> Chief of South Korean Stock Exchange says crypto should be institutionalized quickly </a> 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="4000" height="2250" src="https://crypto.news/app/uploads/2024/12/Ethereum-Exchange-Outflow-Total-All-Exchanges.png" alt="Chart showing Ethereum exchange outflows (total) across all exchanges over the year 2024, alongside ETH price trends. The chart highlights spikes in outflows, with significant peaks in August and December, and Ethereum's price rising to $3.9K in December." class="wp-image-14319686">
 <figcaption class="wp-element-caption">
 The chart tracks ETH exchange outflows (green bars) and price movements (black line) throughout 2024. Spikes in outflows often align with volatility, while Ethereum’s price surged to $3.9K in December, reflecting increased activity amid market movements.
 </figcaption>
</figure> 
Although Lido withdrawals are not immediate, given that they must go through the Ethereum staking queue, such large moves can be indicative of market changes, especially if multiple large stakeholders follow suit, causing an imbalance between staked and unstaked assets. 
 You might also like: <a rel="" href="https://crypto.news/bitcoin-reaches-ath-of-106k-after-trumps-nyse-speech/"> Bitcoin hits $106K, an all-time high fueled by Donald Trump’s intention to do “great with crypto” </a> 
Aside from the ETH withdrawal, Sun deposited $964K EIGEN to HTX, a crypto exchange. Eigen (<a rel="" href="https://crypto.news/price/eigenlayer/">EIGEN</a>) is the native work token for EigenLayer, a protocol that strengthens blockchain security by allowing the restaking of collateral against intersubjective faults. This deposit further indicates that he aims to diversify the liquidity across established tokens and other high-risk tokens he might own.&nbsp;&nbsp; 
 Read more: <a rel="" href="https://crypto.news/sonic-svm-partners-solayer-adrastea-to-expand-solana-restaking/"> Sonic SVM partners Solayer, Adrastea to expand Solana restaking </a>

Justin Sun withdraws $209M ETH from Lido Finance, profits $349M

crypto.news

Other articles published on Dec 16, 2024

Singapore Leads the Way in Cryptocurrency Adoption

South Korea Hits Record $34B in 24-Hour Crypto Trading Volume Amid Emergency Martial Law

Inverse Head & Shoulders Breakout: Is Bitcoin Set for $110K?

Fasqon’s Unique Features

Dogecoin to $24? Analyst Says DOGE Is Basically Ready For the Next Move

America’s strong economy makes high interest rates likely for 2025, but not in Europe

Join our free newsletter for daily crypto updates!