Cardano's price faces challenges amid the threat of PlusToken's ETH sales, which could significantly impact the cryptocurrency market.
Importance of PlusToken’s 1.3 Billion ETH
At the beginning of August, remnants of ETH seized from the PlusToken scandal became active on-chain for the first time since 2021. In the last 24 hours, exchanges received approximately 7,000 ETH (valued at $1.3 billion) from the remaining 542,000 ETH, indicating an intention to sell. It is known that the PlusToken scheme collected 830,000 ETH (approximately $1.984 billion) before its closure. Much of this Ether remained untouched until the summer of 2021, with about a third sent to the lesser-known Bidesk exchange and likely sold.
Correlation Between Cardano and Ethereum
In the last 24 hours, 15,700 ETH moved from known addresses, with 7,000 ETH sent to Binance, Bitget, and OKX exchanges. Additional exchange deposit addresses are likely to become active over time. A drop in Ethereum’s price could affect the performance and stability of DeFi platforms and dApps.
Possible Scenarios for Cardano’s Price
If ETH price drops to $1,950, ADA could decrease by 30.24% to around $0.23. Conversely, if no ETH sale occurs, ADA might rebound by approximately 23.56% to $0.45. Cardano’s price finds itself at a crucial point between a potential 23% gain and a 30% loss, with China’s next move potentially determining ADA’s fate. These calculations do not account for other market factors affecting investor sentiment, and overall market trends should be considered.
PlusToken’s ETH sales could significantly impact Cardano’s price, making it essential for market participants to closely monitor developments.