Trump-Backed DeFi Project Sells Ethereum at Loss Amid ETH Price Drop

The price drop of Ethereum has sparked concern, with even institutional investors beginning to show signs of abandoning the asset class.

Ethereum Whale Sells After Holding for Over 900 Days

According to blockchain analytics firm Arkham Intelligence, World Liberty Financial liquidated a significant portion of its Ethereum holdings. A wallet linked to the project sold 5,471 ETH, worth approximately $8.01 million, at a price of $1,465 per ETH, resulting in a notable loss. The project had initially purchased 67,498 ETH for $210 million, with an average purchase price of $3,259 per token. Now, with ETH trading far below that price, World Liberty Financial is sitting on an unrealized loss of approximately $125 million.

Alongside this sale, a prominent Ethereum whale has also exited their position. The whale, who held 10,000 ETH for over 900 days, sold their entire position for $15.71 million. They locked in a profit of $2.75 million, having initially purchased the 10,000 ETH for $12.95 million in 2022. Despite holding on through ETH’s rise to $4,000, the whale decided to sell at lesser gains amid the recent market downturn.

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Potential for a Retail Dump as Institutions Abandon Ethereum

The liquidation of Ethereum by both World Liberty Financial and long-term holders like the whale has raised concerns that the market may face a retail sell-off. With institutional interest in Ethereum waning and prices continuing to fall, the market may experience increased volatility as retail investors potentially follow suit, dumping their positions and further driving the price down. As Ethereum struggles to find support, many investors are carefully watching the market, unsure of where the price floor may be.

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