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Whales Started Dumping ETH Holdings | stETH-ETH Depegs

  • Whales became active after the recent price drops, and began dumping ETH holdings.

  • These recent whale movements make the market highly volatile.

24 Nov 2022 By : COIN GABBAR
Whales Started Dumpi

Whales became active after cryptocurrency prices fell to their lowest levels, and they began to buy the dip. 

As a result, the cryptocurrency market recovered, with Bitcoin and Ethereum prices increasing by more than 8% and 10%, respectively in the last 48 hours. 

Whales appear to have begun withdrawing Ethereum (ETH) from liquidity pools and Defi liquidity platforms.

Whales Dumping ETH holdings.

As per reports, a whale removed 84K ETH worth nearly $103 million from the Lido: Curve Liquidity Farming Pool Contract. As a result, the stETH/ETH exchange rate fell from 0.985 to 0.975. A significant depeg between staked Ethereum and Ethereum can be detrimental to the crypto market.

MEV Bot arbitraged 104 ETH for a total of $124,800. MEV Bot acquires 8,000 WETH from 0x2718 via a flash loan. In addition, the exchange rate is 8,000 ETH to 8,272 stETH. After that, swapped stETH to 8,104 WETH. Then, for a profit of 104 ETH, return 8,000 WETH to 0x2718.

In May, the Curve liquidity pool balance fell significantly. Despite a slight increase between July and October, it has now dropped back to May levels.

Furthermore, another whale withdrew 42.4K stETH worth nearly $50 million from the Aave Protocol V2. The stETH collateral from Aave has been disabled and will most likely be swapped to Ethereum. Today, November 24, the whale has also moved 5,000 ETH.

Withdrawals from Curve pools had previously occurred in the crypto market, but the price rose after the market recovered. The Lido Staked Ethereum (stETH) price is currently trading at $1,170, up more than 2%. ETH is currently trading at $1,195, up nearly 2%. The stETH-ETH exchange rate is 0.9817.

Curve DAO Short Squeeze

As previously reported, crypto whales ended up going massively short on CRV on exchanges. Whales borrowed Curve DAO Tokens through AAVE, the Open Source Liquidity Protocol, and then sold them on exchanges.

The whales borrowed more Curve DAO tokens to sell on the AAVE protocol. When the CRV price fell to its lowest possible level, those whales went long on centralized exchanges. The price of CRV is currently trading at $0.6889, up 10% in the last 24 hours.

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