Understanding the Recent ETHFI Price Drop 📉
ETHFI, the governance token of Ether.fi staking protocol, has experienced a significant decline of almost 30% following its listing on Binance and OKX. Originally valued at $4.13, the token has seen a sharp decrease of over 25%, leading to concerns among investors about its stability and future prospects.
The Possibility of Potential Sell-offs for ETHFI? 📉
Despite its listing on major exchanges, ETHFI has faced a substantial drop of over 23%, prompting traders and investors to take notice. The 24-hour volume has also dropped by 66% to around $223 million, indicating a bearish sentiment in the market.
- On-chain activity has raised concerns about potential sell-offs, putting downward pressure on ETHFI’s price.
- Initially trading in the green zone at $4.13, the token is struggling to maintain support near $3.
Ether.fi’s Response to Recent Activity 🔄
In response to concerns about Arrington XRP Capital’s activity on the platform, Ether.fi clarified that the fund has been a consistent supporter since the beginning. They were aware of the distribution strategy in advance and explained that consolidating assets into one wallet would not have made a difference. The assets were part of their actively traded liquid funds, and the transfer to Binance was driven by trading and liquidity needs.
Addressing Concerns of a Potential Sybil Attack 🛡️
Arrington XRP Capital emphasized their long-term investment in the platform, having staked over $50 million worth of ETH since February 2023. They clarified that the recent sale of a small portion of their airdrop tokens amounted to less than $700,000, representing only 0.1% of the day’s trading volume. They denied any exploitation of the distribution process or launching a “Sybil attack,” reaffirming their commitment to the platform.
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