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.
However, in just 17 weeks, Ethereum made a comeback and crossed the $4K mark. So, this recent fall isn’t the end of things. It should rather be viewed as a healthy correction in the market.
Put together, whales bought a total of 50,429 $ETH during the fall. This has kindled hopes of recovery amidst long-term holders. A lot of whales have truly ‘bought the dip,’ signaling a long path ahead for Ethereum.
Solana’s Upward Journey
As Ethereum finds itself in choppy waters, Solana has been making significant progress.
Solana stablecoins doubled in market cap in January – from $5.1B to $11.4B. This huge surge can be attributed to the growing popularity of meme coins on the network.
Since Trump launched his own Solana-based memecoin, Solana’s stablecoin supply has increased by more than 73%. Interestingly, Circle’s $USDC is the most sought-after stablecoin on the chain, standing at a value of $9.25B.
This accounts for more than 80% of all the stablecoin transactions on the network.
In contrast, on chains like Ethereum and Tron, Tether’s $UDST is the most dominant stablecoin, with values of $65B and $60B, respectively.
Notably, $USDC was the fastest-growing stablecoin in 2024 at a rate of 78%. Its current valuation stands at $53B, which is still some distance away from UDST at $139.5B.
However, Circle has been making a lot of progress to narrow down this gap. It recently went live on the Aptos mainnet.
Seeing the growth of stablecoins coupled with a meme coin boost by the President of the United States himself, it’s fair to say altcoins have a bright…
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