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Home Ethereum

Jump crypto unstakes $314.8M Ethereum as ETH drops 30%: What’s going on?

August 5, 2024
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Jump crypto unstakes $314.8M Ethereum as ETH drops 30%: What’s going on?
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  • Jump crypto has unstaked and sold off millions of its ETH holdings.
  • The firm still has over 34 million ETH staked.

Jump Trading has been notably active with its Ethereum [ETH] holdings over the past few days, though not in a manner that might be reassuring to observers.

The crypto trading firm has been unstaking its ETH during a week when Ethereum’s price has been declining.

Jump crypto unstakes 120K ETH

Recent data from Lookonchain and Arkham Intelligence revealed that Jump crypto has moved over 120,000 staked Ethereum, valued at approximately $314.8 million at the time of the transfer.

These movements commenced just a day after the launch of spot Ether exchange-traded funds (ETFs) in the United States.

Also, the analysis indicated that most of these ETH tokens were unstaked from a specific redeem address. Despite this substantial movement of funds, the firm retains a considerable amount of Ethereum.

Data showed that it still held 37,604 ETH tokens, valued at around $104 million.

Why is Jump Trading unstaking its Ethereum?

According to Lookonchain, the recent unstaking of Ethereum by Jump Trading is linked to ETH, which was previously exploited in a hacking incident over a year ago.

The firm reportedly regained control of this Ethereum through strategic counter-trading efforts. 

While the precise motivation behind the recent sale of this unstaked Ethereum remains unclear, it is worth noting that Jump Trading is currently under investigation by the U.S. Commodity Futures Trading Commission (CFTC).

However, specific charges have not been disclosed.

The timing of the unstaking and subsequent sale has coincided with a significant drop in Ethereum’s price. This has raised questions about whether these actions were a response to regulatory scrutiny or other external pressures.

See also  Is Ethereum (ETH) Ready For A Monster Move In January 2024?

From the 24th of July, when Jump Trading reportedly began selling the ETH, the price has fallen by more than 30%. 

State of staked Ethereum

Jump crypto’s recent unstaking activities could indeed influence the Ethereum staking landscape. However, a significant portion of it remains staked.

According to Dune Analytics, over 34 million ETH, which accounted for more than 27% of the total circulating supply, were still staked. Lido Finance continued to be the dominant staking platform.

As of this writing, it held over 28% of the staked ETH. 

Jump crypto staked Ethereum

Source: Dune Analytics

Furthermore, the unstaking actions by Jump Trading have sparked a variety of reactions within the cryptocurrency community.


Read Ethereum’s [ETH] Price Prediction 2024-25


An observer on X (formerly Twitter) suggested that Jump crypto’s departure from Ethereum staking might be a bullish signal for the market.

He described the firm as “parasitic” and asserted that the industry could benefit from its reduced influence. 

Previous: Will Bitcoin crash to $40K? Why investors are in a state of panic
Next: Bitcoin dives below $60K, $56K support levels: Till where will BTC fall?

READ ALSO

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  • Jump crypto has unstaked and sold off millions of its ETH holdings.
  • The firm still has over 34 million ETH staked.

Jump Trading has been notably active with its Ethereum [ETH] holdings over the past few days, though not in a manner that might be reassuring to observers.

See also  Optimism DeFi TVL drops by 11% in 2024 - Here's why

The crypto trading firm has been unstaking its ETH during a week when Ethereum’s price has been declining.

Jump crypto unstakes 120K ETH

Recent data from Lookonchain and Arkham Intelligence revealed that Jump crypto has moved over 120,000 staked Ethereum, valued at approximately $314.8 million at the time of the transfer.

These movements commenced just a day after the launch of spot Ether exchange-traded funds (ETFs) in the United States.

Also, the analysis indicated that most of these ETH tokens were unstaked from a specific redeem address. Despite this substantial movement of funds, the firm retains a considerable amount of Ethereum.

Data showed that it still held 37,604 ETH tokens, valued at around $104 million.

Why is Jump Trading unstaking its Ethereum?

According to Lookonchain, the recent unstaking of Ethereum by Jump Trading is linked to ETH, which was previously exploited in a hacking incident over a year ago.

The firm reportedly regained control of this Ethereum through strategic counter-trading efforts. 

While the precise motivation behind the recent sale of this unstaked Ethereum remains unclear, it is worth noting that Jump Trading is currently under investigation by the U.S. Commodity Futures Trading Commission (CFTC).

However, specific charges have not been disclosed.

The timing of the unstaking and subsequent sale has coincided with a significant drop in Ethereum’s price. This has raised questions about whether these actions were a response to regulatory scrutiny or other external pressures.

From the 24th of July, when Jump Trading reportedly began selling the ETH, the price has fallen by more than 30%. 

State of staked Ethereum

Jump crypto’s recent unstaking activities could indeed influence the Ethereum staking landscape. However, a significant portion of it remains staked.

See also  Vitalik Buterin warns against political memecoins like TRUMP – Here’s why

According to Dune Analytics, over 34 million ETH, which accounted for more than 27% of the total circulating supply, were still staked. Lido Finance continued to be the dominant staking platform.

As of this writing, it held over 28% of the staked ETH. 

Jump crypto staked Ethereum

Source: Dune Analytics

Furthermore, the unstaking actions by Jump Trading have sparked a variety of reactions within the cryptocurrency community.


Read Ethereum’s [ETH] Price Prediction 2024-25


An observer on X (formerly Twitter) suggested that Jump crypto’s departure from Ethereum staking might be a bullish signal for the market.

He described the firm as “parasitic” and asserted that the industry could benefit from its reduced influence. 

Previous: Will Bitcoin crash to $40K? Why investors are in a state of panic
Next: Bitcoin dives below $60K, $56K support levels: Till where will BTC fall?
Tags: 314.8MCryptoDropsETHEthereumJumpunstakesWhats

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