Qiao Wang Dumps Ethereum After 10 Years, Questions Its Future
Key Takeaways:
- Qiao Wang sold his ETH after a decade, doubting Ethereums long-term growth.
- Hedge funds have ramped up short positions on Ethereum by 500% since November 2024.
- Despite high inflows, ETH lags behind Bitcoin, fueling speculation of a short squeeze.
Alliance DAO founder Qiao Wang has revealed that he offloaded all his Ethereum holdings last year after having held them since the genesis block. Wang, a seed investor in Pumpfun and avid Ethereum proponent, believes Ethereums period of growth is ending.
He suggested that Ethereums Layer 2 networks have only a marginal 10% to 20% advantage over Solana, which has gained traction for its speed and low fees. After a decade, his decision to exit Ethereum raises concerns about whether ETH can maintain its dominance in an evolving crypto landscape.
Ethereum has long been a key player in decentralized applications, but competition has intensified. The networks high fees and scalability challenges have driven users toward alternatives like Solana and Avalanche.
Wangs departure from Ether signals that even long-time supporters may be reconsidering its future potential, especially as rival chains continue to improve and attract developer interest.
Wall Streets Massive Ethereum Shorts Spark Concerns
The Kobeissi Letter has highlighted a dramatic shift in market sentimentEther short positions have surged by 500% since November 2024. In just one week, short interest jumped another 40%, marking one of hedge funds most aggressive bearish moves.
This extreme positioning led to a significant market reaction on February 2nd, when Ether crashed 37% in just 60 hours, wiping over $1 trillion from the crypto market. The drop was reminiscent of the 2010 stock market flash crash but occurred without any major headlines.
Despite the heavy shorting, Ether has seen strong inflows, with $2 billion added in just three weeks. A record-breaking weekly inflow of $854 million in January suggested that investors were still betting on Ethereums long-term potential.
However, hedge funds seem determined to tame any price rallies, dampening ETHs breakout attempts. While Bitcoin and other major cryptocurrencies rallied, Ether remained stuck, currently trading 45% lower than its November 2021 all-time high.
The reason for this aggressive shorting is unknown. Some have speculated it may be market manipulation, and others think it may be a sign of doubts regarding Ethers long-term competitiveness.
Regulatory issues also remain, despite the new U.S. administration under Donald Trump appearing more crypto-friendly. Quite astonishingly, Eric Trump just tweeted, Its a great time to add ETH, which caused the price to spike briefly.
Related Reading: Looking For A Crypto To Mirror DOGEs And SHIBs Infamous Runs? This Altcoin Could Be Your Ticket To 100x Gains
Read more: https://www.tronweekly.com/qiao-wang-dumps-ethereum-after-10-years/
Text source: TronWeekly
