According to Nansen data, on August 8, major players in the crypto market transferred large amounts of funds to the Ethereum network, LDO coin and cryptos such as LINK and PEPE. These professional investors, known as Smart Money, showed great interest in Ethereum’s derivatives and related tokens.
Smart money attacks LDO coin and them
According to the list that tracks 24-hour Ethereum network fund inflows, the most notable flows are as follows:
- Wrapped Ethereum (WETH): It ranked first on the list with an inflow of over $ 45 million. WETH is a token that enables Ethereum to be used on other Blockchains.
- aETH and its Derivatives: Ethereum staking derivatives such as Lido Staked Ethereum (stETH), Rocket Pool (rETH), Coinbase Staked Ethereum (cbETH) also saw significant fund inflows. This shows that investors are turning to locking Ethereum for the long term and earning staking rewards.
- Lido DAO Token (LDO): LDO, the governance token of the Ethereum staking solution Lido Finance, also received a significant inflow of funds. This shows that Lido’s popularity is growing and investors are confident in the future of the protocol.
- LINK and PEPE: Other tokens such as the Oracle solution Chainlink’s token LINK and the meme coin PEPE also attracted attention by being on the list.
What do these developments mean?
Fund inflows of this scale once again demonstrate the reliability and attractiveness of the Ethereum network and ecosystem among investors. Especially with the Ethereum 2.0 transition, the network’s significant improvements in scalability and security continue to attract the attention of institutional investors.
- Will Ethereum’s dominance increase?: This situation may increase Ethereum’s dominance in the cryptocurrency market and cause other altcoins to lose relative value.
- Is the DeFi sector gaining momentum again?: The use of decentralized finance (DeFi) protocols running on the Ethereum network is expected to increase. This could contribute to the growth of the DeFi sector and the emergence of new projects.
- Staking rewards are becoming attractive: Ethereum staking offers investors the opportunity to earn passive income. This could lead to more investors locking up Ethereum and strengthening network security.
As a result, Smart Money’s large investments in Ethereum could be a significant turning point in the cryptocurrency market. This development gives positive signals about the future of Ethereum and could become a reference point for other cryptocurrency projects.
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