Celsius Sells $250 Million Worth of Assets in One Month, Dominated by ETH
Recent on-chain data has revealed that bankrupt cryptocurrency lender Celsius liquidated approximately $250 million in digital assets over the past month, with Ethereum accounting for the lion’s share.
According to crypto analyst Apes_Prologue, Ether comprised a staggering $243 million, nearly 97%, of the defunct firm’s recent sell-offs. Further insights from blockchain analytics firm Peckshield noted that Celsius transferred over 10,000 ETH units, valued at around $24 million, to exchanges like Coinbase and FalconX within the last 24 hours.
The bulk of Celsius’s sell-off was Ether, but it wasn’t the only asset dumped. The firm reportedly offloaded $3 million in stablecoins, along with holdings in Chainlink’s LINK ($1.3 million), Pax Gold ($1.4 million), Polygon’s MATIC, and Avalanche’s AVAX, among others.
Analysts speculate on the motivations behind Celsius’s asset liquidation. According to CryptoSlate, Jef Breed, founder of Breed VC, suggested that the move might be linked to supporting MiningCo, a Bitcoin mining company backed by creditors of the failed lender.
This shift could be a result of regulatory hiccups faced by Fahreint (NewCo), previously the primary bidder in Celsius’ bankruptcy auction. Fahreint encountered obstacles in its plans for Ethereum staking and Bitcoin mining services, prompting Celsius to pivot toward a mining venture led by MiningCo.
Market observers speculate that Celsius’s significant selling spree might have influenced Ethereum’s recent price trends. While other major cryptocurrencies like Solana, Cardano, and Avalanche have seen rapid gains, Ethereum’s price surge has been relatively modest. Despite a 2% rise in the last seven days, it has struggled compared to SOL, which surged by around 20%.
Nevertheless, analysts remain optimistic, foreseeing a potential upswing for Ethereum, especially with the narrative around a spot ETH ETF on the horizon.
