Justin Sun Loses $66 Million as Ethereum Dips to 5-Month Low

Reports reveal that Justin Sun lost $66 million on Friday as Ethereum's price plummeted to its lowest since February. The crypto market sell-off is casting a shadow over the optimism surrounding the potential launch of spot ETH ETFs. Despite the increased fear in the market, various signals suggest that Ethereum's price might stabilize and avoid further significant declines after Friday's 10% crash.

How has the Ethereum Price Moved Recently?

Ethereum is currently priced at $3,006.33, with a 24-hour trading volume of $30.33 billion and a market cap of $361.17 billion, giving it a market dominance of 17.27%. Over the past 24 hours, ETH's price has risen by 4.38%.

Ethereum reached its peak price of $4,867.17 on November 10, 2021, and its lowest price of $0.420897 on October 21, 2015. Since hitting its all-time high, the lowest price Ethereum has seen is $897.01, while the highest since then has been $4,094.18. The current market sentiment for Ethereum is bearish, with the Fear & Greed Index at 26 (Fear).

Ethereum's circulating supply is 120.14 million ETH, with an annual supply inflation rate of -0.24%, resulting in a reduction of 292,161 ETH over the last year.

Justin Sun lost $66 million

Spot On Chain reports that the founder of Tron and advisor to Huobi Global may have seen his $58 million profit from the last five months wiped out as Ethereum's price fell to $2,810 on Friday.

Based on the report, Justin Sun accumulated 361,000 ETH tokens between February and June, totaling approximately $1.1 billion in value. The majority of these transactions took place on Binance, where he recently executed transfers involving various DeFi tokens.

During the five-month period when Sun acquired ETH through Binance, the transactions were detailed as follows:

• In February, he purchased 169,604 Ethereum (ETH) via wallet address “0x7a9” at an average price of $2,870.
• In April, he acquired 176,117 Ethereum (ETH) through wallet address “0x435” at an average price of $3,177.
• In June, Sun bought 15,416 Ethereum (ETH) via wallet address “0xdbf” at an average price of $3,474.

These wallets frequently received ETH directly from Binance following deposits of stablecoins.

What does this mean for the crypto market?

Justin Sun's significant acquisition of 361,000 ETH tokens, totaling approximately $1.1 billion, through Binance over the span of five months highlights his substantial investment in Ethereum amid volatile market conditions. His strategic purchases, with average prices ranging from $2,870 to $3,474, suggest confidence in Ethereum's long-term potential despite recent price fluctuations. 

This move by Sun could influence market sentiment, potentially signaling renewed investor interest in Ethereum amidst broader market uncertainties. Looking ahead, if Sun's bullish outlook on Ethereum proves prescient and market conditions stabilize, it could contribute to a resurgence in ETH value. However, any adverse market developments or regulatory changes could pose risks to this optimistic scenario.