Key Points
- Whales have started selling their Ethereum (ETH) holdings at a loss, causing market uncertainty.
- ETH’s network growth is decreasing as interest in the NFT sector declines.
Ethereum (ETH) recently fell below the $3,000 mark, causing market apprehension and Fear, Uncertainty, and Doubt (FUD). Whales, significant holders of cryptocurrency, began selling their ETH, with some even selling at a loss.
Whales Selling ETH at a Loss
Data from Lookonchain reveals that one substantial holder sold 6,714 ETH for $19.5 million at $2,903, resulting in a loss of $6.45 million. The sale of large volumes of ETH by whales can create substantial sell pressure in the market, potentially driving down ETH’s price further.
The willingness of this particular whale to sell at a loss could potentially incite more market unrest. Such sell-offs can have a cascading effect, further impacting ETH’s price as more whales decide to offload their holdings.
At the time of writing, ETH was trading at $2,918.79, marking a 5.64% decline in the last seven days. The trading volume of ETH also fell by 48% during the same period.
Declining Network Growth and Interest
In addition to this, the Network Growth of ETH, a key altcoin, has been declining, indicating that new addresses are losing interest in ETH. Despite lower prices, new addresses appear uninterested in ETH.
However, on a brighter note, the velocity at which ETH was trading had surged, as indicated by its rising velocity. The overall activity on the network remained stable, with gas usage on the network staying consistent, suggesting that usage had not significantly declined.
One worrying trend, however, was the decreasing number of NFT trades happening on the network. Popular NFT collections such as BAYC and MAYC were not attracting attention on any marketplaces.
Other networks like Bitcoin (BTC) and Solana (SOL) were performing relatively better than Ethereum (ETH), capturing a significant market share in the recent days.
