Ethereum Traders Buy 50,429 $ETH During Price Dip as Solana Stablecoins Surge

Ethereum experienced a significant sell-off on Monday, dropping below the $2.1K threshold, marking a 25% decline from its opening price. This was primarily driven by whale wallets liquidating positions, with two wallets transferring $149M and $201M worth of Ethereum to Bitfinex. The last activity from these wallets occurred in 2019.

Aave also faced substantial liquidations, totaling around $200M, largely due to loans secured by Wrapped Ethereum (WETH). Consequently, the total value locked (TVL) in Ethereum DeFi dropped from $63B to $54B.

Key points include:

Comparison to an August 2024 fall linked to Japanese yen carry trade restrictions
Whales bought 50,429 Ethereum during the dip, indicating potential recovery
Ethereum closed above its opening price later that day

In contrast, Solana has seen notable progress. Its stablecoin market cap doubled from $5.1B to $11.4B in January, driven by increased interest in meme coins, particularly after a Solana-based memecoin launch by Trump. Circle's USDC is the dominant stablecoin on Solana, accounting for over 80% of transactions, while USDC's overall valuation reached $53B.

Highlights from Solana's growth:

Solana’s stablecoin supply surged by over 73%
USDC is the fastest-growing stablecoin in 2024 with a growth rate of 78%
Circle's recent launch on Aptos mainnet

The landscape suggests a promising future for altcoins amidst ongoing developments in both Ethereum and Solana.