Ethereum saw some huge selling in the early trading hours of Monday as it dipped below the $2.1K mark – a 25% dip from its opening price that day.
This fall was a result of whale wallets liquidating their positions in $ETH. For instance, two dormant wallets sent $149M and $201M worth of $ETH to Bitfinex. These wallets were last active in 2019 when a withdrawal of 77,736 $ETH was made.
Aave ($AAVE) also saw some rapid liquidations during this time, totaling around $200M.
Most of this liquidation came in the loans that were secured by Wrapped $ETH ($WETH), showing $ETH’s stronghold in the DeFi and crypto lending sector. Consequently, the total value locked (TVL) in $ETH DeFi also fell from $63B to $54B.
This fall is akin to the August 2024 fall, which was triggered by the restrictions placed on the Japanese yen carry trade. $ETH dropped to a low of $2,112 back then ..
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