The price of Ethereum dropped as a result of the sale of 65,000 Ethereum on Uniswap. The massive crunch has had a significant impact on the price of Ethereum. This caused investors to be pessimistic.
Ethereum mining has become unprofitable for consumers connected to the main power grid for the first time since 2020. As energy prices rose, the price of Ethereum plummeted to $1,188.
Because of escalating power costs in New England, Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island, the price is higher than the Ethereum return for the same GPU. Miners who spend more than $0.245 per kWh are now losing money as a result.
Ethereum mining using GPUs is no longer economical. At this time, it is more cost-effective to buy Ethereum rather than mine it or spend money on electricity.
Michael Edward Novogratz, the CEO of Galaxy Investment Partners, forecasts that the Ethereum price will fall to $1,000 and stay there in the current downturn. Ethereum, according to Novogratz, is closer to “the bottom” than US stocks, as he remarked during a Morgan Stanley meeting.
The Dominance of Lido Staking, a Threat To Ethereum’s Price
Ethereum protocol staking Staking on Lido has surpassed that on Ethereum, putting the decentralised blockchain at risk of centralised attack. If the network merges and becomes a proof-of-stake network, this could happen.
In a blog post titled the dangers of LSD, Danny Ryan, an Ethereum Foundation researcher, described this scenario (Lido staking dominance). Due to the risk of centralised attacks, Ryan recommends all Ethereum stakeholders set up a barrier and caution investors to limit their exposure to the protocol.
According to Dune Analytics, Lido leads ETH2 liquid staking with a 90.8 per cent balance and over 4 million ETH staked. The Lido team claims to have 21 validators on staff, and centralised institutions cannot provide this level of transparency.
On Uniswap, the Price of Ethereum Has Dropped To $950.
In comparison to other cryptocurrency exchanges across different trading pairings, the price of Ethereum on Uniswap plummeted to $950 on Monday, June 13. A large wallet investor sold 65,000 Ethereum in exchange for stablecoins, putting $100 million in the cryptocurrency’s liquidity.
Ethereum’s current price has dropped by 20% compared to other cryptocurrency exchanges due to the incident. Due to liquidation risk on an over-leveraged investment, the whale auctioned off massive amounts of Ethereum.
- ETH was used to borrow 80 million DAI.
- The whale provided 96,700 ETH via Maker DAO MAKER/USD to the loan.
- A position of 130,000 ETH has been created.
The whale reduced their risk by selling over 65,000 Ethereum tokens on Uniswap and lowering the liquidation price because this was an unduly leveraged position.
