Celsius Network Exerts Pressure on the Ethereum Network

Celsius Network persistently increased Ethereum deposits on Coinbase Prime, maintaining consistent gas usage on the Ethereum network, while witnessing a decrease in NFT trades.

Celsius Network Exerts Pressure On The Ethereum Network_65d5e17f040d2.webp

Ethereum’s recent price surge has injected optimism into the trading community, but the actions of the now-defunct crypto lender, Celsius, seem to be throwing a wrench into Ethereum’s upward momentum.

Despite the positive sentiment, Spot On Chain’s data reveals that Celsius deposited an additional 67,500 ETH into Coinbase Prime in the last two days, totaling around $156.5 million. This move is part of Celsius’ ongoing restructuring strategy, involving a cumulative transfer of 847,626 ETH (equivalent to approximately $1.9 billion) to centralized exchanges since November 13, 2023.

The repercussions of Celsius’ continuous sell-offs are evident in Ethereum’s recent performance. Over the last 24 hours, ETH witnessed a 2.4% decline, showcasing a notable correlation between Celsius’ transactions and short-term fluctuations in Ethereum’s market value.

The consistent liquidation of ETH holdings by Celsius raises concerns for Ethereum on multiple fronts. Firstly, the substantial sell-offs may contribute to increased selling pressure, causing short-term downward price movements. This influx of supply can disrupt the delicate balance between demand and supply, potentially resulting in heightened price volatility and fluctuations.

Related: Ethereum Completes Dencun Upgrade on Sepolia Testnet

Furthermore, the ongoing actions of Celsius might deter potential investors, prompting them to avoid holding ETH due to uncertainties associated with Celsius’ behavior. This waning interest in ETH is underscored by the diminishing network growth observed in Ethereum.

Celsius Network Exerts Pressure on the Ethereum Network

The decline in network growth implies a decrease in the frequency of ETH trading by new addresses, reflecting a possible reluctance or caution among investors.

1706839939

Turning to the state of NFTs, while Ethereum’s overall network activity remained steady with consistent gas usage, the number of NFT trades experienced a notable downturn. This reduction in NFT transactions could signify a shift in user preferences or alterations in market dynamics within the Ethereum-based NFT space.

5.0/5

(100 votes)

Latest

Solana Launches Hackathon Competition For Ai Agents

News | AI | Altcoin | Editor Choice

Solana Launches Hackathon Competition for AI Agents

The Solana Foundation, in collaboration with a16z, is hosting an AI Hackathon for AI agent developers, offering prizes of up to $185,000.

Azcnews Xrp Surges Following Approval Of Stablecoin Rlusd

News | Altcoin | Editor Choice | Policy & Regulations

XRP Surges Following Approval of Stablecoin RLUSD

Ripple's stablecoin RLUSD has received approval from the New York Department of Financial Services (NYDFS), sending XRP soaring in price.

Binance Announces Listing Of Magic Eden (me) As A Seed Tag

News | Altcoin | Editor Choice | GameFi

Binance Announces Listing of Magic Eden (ME) as a Seed Tag

Binance has announced the listing of Magic Eden (ME) at 15:00 UTC on December 10, 2024. Magic Eden is an NFT marketplace on the Solana blockchain.

Azcnews Altcoins Face Sell Off, But Outlook Remains Optimistic

News | Altcoin | Analytics | Editor Choice | Memecoin

Altcoins Face Sell-off, but Outlook Remains Optimistic

Altcoins have fallen sharply as Bitcoin price dropped to $90,000. However, the overall signal is still positive, suggesting that the market can recover quickly.

Justin Sun Moves A Massive Amount Of Eth Ahead Of Sharp Price Drop

News | Altcoin | Editor Choice

Justin Sun Moves a Massive Amount of ETH Ahead of Sharp Price Drop

Justin Sun showed his extremely effective investment strategy, when he made a large transfer of ETH right before the price plummeted.