Ever since June 2018, ICO projects based on the Ethereum blockchain have been liquidating their ETH holdings. Then when December came by, the treasury withdrawals set a new record for the year 2018 at over 420,000 ETH liquidation.
A December Liquidation Event of Over 420,000 ETH
According to Diar, the month of December has seen the most substantial ETH liquidation of the year with a record of more than 420,000 ETH liquidated from ICO treasuries. This is far greater than what was obtained in the previous month, and it was quite a large amount of withdrawal.
The firm which is known for conducting market research has also made available some statistics to explain the reason why the bearish trend of the market has remained prolonged for the year 2018. At the beginning of the year, ICO treasuries held a total of 4,623,148 ETH but right now, the figure just stated has come down to 3,052,168 ETH.
As the year progressed, an average of 2.45 per cent monthly withdrawal was recorded but fast forward to December; the Ether withdrawal percentage is at 12.20 per cent, which translates to 423,816 ETH so far.
In November, a massive selloff was also recorded. Every event always has a beginning point, and the same can be said of November’s liquidation. The month witnessed the liquidation of over 290,000 ETH which started with the 82K ETH drawdown by Tezos.
A Year-low Sales
At least half of the ETH amount withdrawn in December can be traced to the actions of Filecoin. Half of the massive withdrawals began the moment Filecoin sold a total of 216,906 ETH of its holdings, which also happens to be all it had in its treasury.
The substratum is yet another project whose contribution can be seen through its actions as it withdrew almost all the ETH it had in its treasury, liquidating in December a total amount of 8,931 ETH.
Kyber took out a total of 66,454 ETH from its entire holdings and only left behind just a bit over 3,000 ETH in its treasury. In all these liquidation events, the main reasons for their occurrence are still kept secret.
By taking a look at the yearly price chart of ETH’s $125.602 -0.48%, it can be observed that cryptocurrency suffered a lot during the third quarter. In December, the price fell as low as $83, which is about a 95 per cent decline from the high values it boasted of when the year just began.