A report from TrustNodes has shown that Ethereum sales for September have tripled compared with August. ICOs selling off their holdings to cover costs is suspected to be behind the change in market behaviour.
The last two weeks have seen a dramatic change in market behaviour as Ether sales increased threefold on August’s figures. TrustNodes have reported that 160,000 Ether tokens were sold in the last ten days alone, representing a huge spike and more than double what was sold in the preceding ten-day block. In total, 283,000 tokens were sold in the last thirty days equalling around $58 million at time of writing.
But this is not necessarily good news for Ethereum. TrustNodes attributes the sales to ICOs which are cutting their losses in order to cover their immediate costs. Sales of ETH per day have rocketed upwards from averages of between one- and five-thousand tokens sold per day in August to around ten-thousand per day in September. An exceptionally huge day for ETH sales was September 4th, on which 82,000 tokens were sold. This precipitated the token’s price crash on September 5th when it lost around ten percent of its value.
The report also shows data on the largest sales of ETH over the last month with ICO DigixDAO at the top of the board, having sold more than half of its total ETH holdings which amounted to around $150 million worth. There is also speculation that this particularly large sell may have been the cause of the sell-off which led to the price crash seen on the 5th of September. In cases of such large sales, it is generally thought to be better economic practice to have a phased liquidation of assets over a number of days or weeks, so as not to rattle the market.
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Alex has been putting words on paper since he was old enough to hold a pen; when he bought his first bitcoin in January 2017, those words discovered their place within crypto as well. He holds a master’s degree in international relations from Leiden University in the Netherlands, and his special expertise lies in European cryptocurrency regulation.