Ethereum price recovery, as well as that of other cryptocurrencies, suggests that the broader financial market is taking a breather.
Tron founder Justin Sun is making a big bet on Ethereum (ETH) as the broader market eyes recovery. The crypto industry faced a major hit on Monday that involved a major price change for all cryptocurrencies.
The plunge came on the heels of widespread stock market sell-offs triggered by negative job reports and perceived inaction by the Federal Reserve. As a result, the crypto market saw a significant drop in the broad market cap from $2.5 trillion on July 28 to approximately $1.9 trillion on August 5.
Buying the Ethereum Dip
While many investors and crypto enthusiasts are lamenting over the price dip, some others have seized the opportunity to expand their crypto holdings. With Ethereum now at $2,519.88, that is after gaining 12.17% in the last 24 hours, Tron founder Justin Sun decided to ‘buy the dip.’
Sun, also a major Ethereum proponent, launched an accumulation spree for the coin in February 2024. Ever since, he has constantly taken a slice of the Ethereum market. This time around, Sun acquired 14,884 ETH according to the blockchain analytics platform Spot On Chain. He purchased the holding, which is worth approximately $36 million from leading cryptocurrency exchange Binance.
As a result of this recent buy, the Tron founder’s total ETH holdings are now 392,474 units of the second-largest cryptocurrency by market cap. This entire holding cost him about $1.19 billion to purchase but with the current price plunge, it is barely worth $988.9 million. Meanwhile, a rumor made rounds earlier about Sun liquidating up to $200 million from his leveraged long position when Ethereum went below $2,000.
However, he debunked the claims citing that the Tron team does not engage in leveraged trades. “Instead, we prefer to engage in activities that provide greater support to the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity,” Sun explained.
Ethereum ETFs Continue to Pull in Institutional Investors
Ethereum price recovery, as well as that of other cryptocurrencies, suggests that the broader financial market is taking a breather. This move began after the release of strong PMI data and improving employment numbers. It is worth noting that despite the price hurdle that ETH faced, US spot Ethereum ETFs still recorded massive inflows.
Data from Farside Investors confirmed that the total net inflow for the products amounted to $48.8 million on August 5. BlackRock’s iShares Ethereum Trust (ETHA) contributed inflows of $47.1 million and Grayscale’s ETHE registered outflows worth approximately $46.8 million. Also, Fidelity’s FETH and VanEck’s ETHV saw inflows of over $16 million each.
Noteworthy, the spot Ethereum ETFs have seen this inflow trend since the beginning of this month. On August 1, Ethereum ETFs’ net inflow hit $26.7 million, triggered by the large $89.6 million investment in BlackRock’s ETHA. This reflects institutional investors’ growing confidence and adoption of crypto products.
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