Ether.fi (ETHFI) has experienced a significant sell-off since its listing on Binance, causing concerns among investors. Recent on-chain activity, specifically involving Arrington XRP Capital, has further fueled speculation of sell-offs and raised questions about whether the token will be able to hold the $3 support level. Nansen, a blockchain analytics firm, has identified interesting behavior on the Ether.fi platform, highlighting significant transactions by Arrington XRP Capital.
Arrington XRP Capital minted 5,000 units of eETH, Ether.fi’s liquid staking token, which were then distributed to ten different wallets. Following the distribution, Arrington XRP Capital claimed a total of 200,498 ETHFI tokens across the wallets and transferred them to Binance for potential selling purposes. This could potentially exert more pressure on ETHFI.
The Ether.fi team has responded to the speculation, stating that Arrington XRP Capital has been a consistent supporter of the platform and has actively staked its assets on Ether.fi. The team claims that the multi-wallet distribution was not a surprise and that consolidating the assets into a single wallet would have produced the same results. They also explained that the decision to transfer the assets to Binance was based on their trading activities and liquidity needs.
Arrington Capital also clarified the context, stating that they have been long-term investors and staked over $50 million of ETH since February 2023. They mentioned that the recent sale of a small percentage of their initial airdrop tokens represented only 0.1% of the day’s trading volume and did not exploit the protocol’s distribution methodology.
Overall, while the sell-off and on-chain activity have raised concerns, both Ether.fi and Arrington XRP Capital have provided explanations to address the speculation and reassure investors. It remains to be seen whether the $3 support level for ETHFI will hold amidst the intensified sell-off.