Tron’s Justin Sun Makes Bold Move to Withdraw 52.9K Ethereum

Highlights:

• Tron’s Justin Sun has taken steps to withdraw over 50K Ethereum worth over $200 million.
• Citing historical trends, the actions above have spurred price drop concerns among market participants.
• A market expert has suggested that supply shock will catalyze Ethereum’s ascent to $10,000.

According to the renowned on-chain crypto transactions tracker Spotonchain, Tron’s (TRX) founder and Chinese businessman Justin Sun is making headlines with a fresh 52,905 Ethereum (ETH) withdrawal request. Spotonchain noted that the businessman already applied to withdraw the coins from Lido Finance a few hours ago.

It is worth noting that the over 50K tokens are worth approximately $209 million. “This is part of the net 392,474 ETH he allegedly bought at about $3,027 ($1.19B) via three wallets from Feb-Aug, now having an estimated total profit of $349M (+29%),” the on-chain tracker explained.

Meanwhile, the X post noted that the Tron founder contributed to ETH exchange deposits that culminated in price declines in the past. Per the on-chain tracker, Sun unstaked 80,251 Ethereum from Lido on October 4, 2023. It added that the Tron founder sent the withdrawn tokens to Binance within the next four days. Subsequently, Ethereum’s price dropped by about 5% in mid-October.

Justin Sun (@justinsuntron) applied to withdraw 52,905 $ETH (now $209M) from #LidoFinance an hour ago.

This is part of the net 392,474 $ETH he allegedly bought at ~$3,027 ($1.19B) via 3 wallets from Feb-Aug, now having an est. total profit of $349M (+29%).

Note that on Oct 4,… https://t.co/r5z7l8YSUq pic.twitter.com/GAalq1imjO

— Spot On Chain (@spotonchain) December 16, 2024

Another ETH Dumps Seem Imminent

Considering his past actions, particularly the Lido Foundation connection, one could suggest that the Tron founder might want to dump ETH, which seemed plausible considering Ethereum’s price surge in the past few days. If such happens, chances abound that the exchange deposits will negatively impact ETH’s price.

Hence, it is unsurprising that market participants are raising concerns about the Tron founder’s recent actions. Reacting to the disclosure, an X user suggested he is using the proceeds from the sales to acquire more meme coins. Another comment presumed Sun is pumping the funds into his Tron Foundation’s ecosystem advancement.

The above projections remain mere speculations, pending when Sun’s clarification. For now, the sell-off assumption remains the most probable explanation, implying that Ethereum enthusiasts should gear up for a possible slight price correction.

Ethereum’s Price Reaction

At the time of press, Ethereum is changing hands at approximately $3,900, reflecting a 1.2% upswing in the past 24 hours. Within the same timeframe, ETH minimum and maximum price levels fluctuated between $3,849.20 and $4,012.57, underscoring concentrated efforts to stabilize above the $4,000 level.

Meanwhile, following its recent price increment, Ethereum’s market capitalization has slightly increased to about $470.05 billion. In addition, its 24-hour trading volume has soared by about 14.65% and boasts about $31.56 billion worth.

Aside from its short-term interval price change variables, Ethereum’s extended period data has remained profitable. For context, its 7-day-to-date, 14-day-to-date, and month-to-date price change data reflected increments of about 1.8%, 9.2%, and 25.3%, respectively.

Analyst Explains Why Ethereum at $10,000 Will Happen Soon

In one of his numerous tweets, Ash Crypto, a reputable market analyst, projected that Ethereum will hit $10,000 soon. The expert cited supply shock as a possible factor catalyzing the price increment. Hence, his tweet contained several events that could cause ETH’s supply depletion.

The top three events include billions in staked Ethereum Exchange Traded Funds (ETFs) ETH procurements and increased Ethereum transactions, depicting more token burns. Other activities that would contribute to the unprecedented surge include Ethereum’s historic bull cycle, Decentralized Finance (DeFi) positive impacts, and Layer-2s actions that entail consuming and locking significant Ethereum holdings.

ETH supply shock is coming

1) Billions in ETH staked
2) ETFs buying billions in ETH
3) More transactions = ETH burning
4) ETH historic bull cycle
5) Defi now okay in US after trump
6) L2s consuming and lock more ETH

It think $10,000 sooner than we think

— Ash Crypto (@Ashcryptoreal) December 16, 2024