Why is #ETH dumping? π«€
Something is not right with Ethereum recently!
Why has #ETHEREUM taken maximum hit after #LUNA crash amongst Large Cap Coins? π΅βπ«
Let's find out the top 3 reasons in this #Thread! π
#Price #Predictions on last thread! π
Something is not right with Ethereum recently!
Why has #ETHEREUM taken maximum hit after #LUNA crash amongst Large Cap Coins? π΅βπ«
Let's find out the top 3 reasons in this #Thread! π
#Price #Predictions on last thread! π
1) #Eth Time Difficulty Bomb #Delayed π§
EIP 3238: Inbuilt into Eth is a difficulty time bomb that makes Eth Mining increasingly more difficult. The time it takes to mine a new block will be so long that profitability for miners will drop, and transactions will be too slow.
EIP 3238: Inbuilt into Eth is a difficulty time bomb that makes Eth Mining increasingly more difficult. The time it takes to mine a new block will be so long that profitability for miners will drop, and transactions will be too slow.
Developers want miners to stop mining #Eth1.0 and move over to #Eth2.0 upon release. Else, miners could continue using Eth 1.0, similar to the split seen with #Eth & #ETC. Due to delay in Time Difficulty Bomb, Eth 2.0 is directly or indirectly getting delayed, which is not + π΅βπ«
2) StEth and Eth de-pegging can become lethal π°
StEth is a token representing Eth staked on Lido (Liquid Staking Protocol). The protocol allows its depositors to use their Lido staked assets to gain a yield on top of their original staking yield.
StEth is a token representing Eth staked on Lido (Liquid Staking Protocol). The protocol allows its depositors to use their Lido staked assets to gain a yield on top of their original staking yield.
#StEth and #Eth are pegged 1:1 similar to how UST was pegged to #USD in 1:1. Lido noticed that long-term stETH holders and LPs are not at risk, leveraged positions on StETH are (Over-collarterised StEth). π«
#stETH has been depegging from #Eth, with the first wave of losses stemming from a massive $1.5 billion dump by #AlamedaCapitalβ one of the largest holders of stETH. Alameda sold all of its holdings of the token. π±
Following the resumption of the Terra blockchain for the second time, Lido announced that users could bridge #bETH β a representation of stETH on Terraβs Anchor protocol β back to Ethereum.π₯
As holders flee Anchor and retrieve #stETH, if they want to cash out to fiat currency, they must first sell #stETH for #Eth, as major exchanges only list the native asset β not its staked derivative. π³
Much of the #bETH being swapped in Curve stems from liquidations of loans on Anchor that became undercollateralized, and was therefore acquired at a discount. However, Lido mentioning that almost all positions are safe until the 0.97 de-peg level. π«‘
3) A slight disruption in a #Merge #Testnet last month had also caused sharp losses in Ethereum price.π΅βπ«
@VitalikButerin @cz_binance @elonmusk @saylor Can you please throw some light on this? π
@VitalikButerin @cz_binance @elonmusk @saylor Can you please throw some light on this? π
** Eth can touch $1200 ** 
β’ β’ β’
Missing some Tweet in this thread? You can try to
force a refresh
γ
