The latest bearish crypto prices have no doubt had a massive impact on investor balances.
Heavy liquidations and losses have been the order of the day for investors going long.
Market analysts have been waiting to see whether Ethereum will bounce back especially as sentiment shows signs of improvement.
One particular incident may offer further insights especially in regards to the impact of the bears on the Ethereum DeFi ecosystem.
On-chain Lens recently reported that a whale executed a 50X leveraged long position with 175,000 ETH worth roughly $335.4 million at press time.
The long position was reportedly executed on the HyperLiquid decentralized exchange.
The report revealed that the whale closed the position, bagging a $2.15 million profit.
Could these whale trades be a sign that the market is ready to bounce back?
Is The Coast Clear for ETH Bulls, Will Further Downside Do More Damage?
The large whale trade comes just as whale activity had started to make a comeback.
Large holder netflows recorded a gain from -3,900 ETH on 9 March to 196,830 ETH as of 11 March.
A clear confirmation that whales were buying at sub $2,000 prices.
However, the fact that the whale observed by HyperLiquid quickly got out of the position may indicate a focus on short term.
In other words, there is still uncertainty about ETH’s potential bounce back.
What happens if ETH continues declining? Past bearish events have highlighted risks in the DeFi ecosystem.
Extreme bearish conditions have historically led to heavy liquidity outflows.
A potential negative impact of extended bearish conditions could be a mass unstaking event.
DeFi protocols could lose liquidity in such a situation and this could ultimately make it difficult for them to continue functioning effectively.
Crypto Prices See Upward Trajectory
Contrary to aforementioned fears, the Ethereum network continues to experience positive growth.
Especially in terms of total value locked which in terms of coin amount just peaked at 25.86 million coins.
Note that the TVL in dollar value was down to $49.06 billion compared to over $83 billion at its peak in December.
This decline is largely due to the dip in ETH price action. Ethereum stablecoin marketcap also managed to clock in at $122.64 billion.
This means it managed to maintain close to its recent ATH high. Evidently, Bearish market conditions have not hurt network performance so far.
In fact, their growth confirms that more ETH holders are locking up their coins after buying at discounted prices.
An outcome that also confirms a long term focus. Ethereum also maintained healthy network activity. Daily transactions held steady above $1.10 million transactions.
This is further confirmation that the Ethereum DeFi ecosystem is still enjoying robust utility especially with the trading activity associated with the recent dip.
The post Crypto Prices: Bearishness Over? Whale Activity Heightens appeared first on The Coin Republic.
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