In a new tweet, on-chain analytics firm Santiment notes that the second largest cryptocurrency, Ethereum (ETH), and Binance USD (BUSD) stablecoin are seeing dormant coin movements.
Santiment observes that Ethereum and BUSD have had historic dormant movements this week. This is because the average age at which both tokens have been sitting in wallets has become much younger after massive stagnation. In this regard, that of BUSD fell by 378 days, while that of Ethereum fell by 26 days.
🤔 The average age in which #Ethereum and #BinanceCoin tokens have been sitting in wallets both became much younger after massive stagnation. Do you believe both coincide with the #FTX liquidations and sell-offs that began this week? https://t.co/RyFfUbMe22 pic.twitter.com/KfRZPtCZn1
— Santiment (@santimentfeed) September 15, 2023
It is speculated that this historic dormant movement might be related to the FTX-triggered liquidations and sell-offs that began earlier in the week.
FTX, which currently controls over $3.4 billion in crypto assets, has been granted permission to sell its crypto holdings by a U.S. judge.
FTX will be allowed to sell off in weekly batches, with a first-week restriction of $50 million and following weekly limits of $100 million. However, BTC and ETH can only be sold after giving the creditors’ committee, ad hoc committee and the U.S. trustee a 10-day notice.
This aside, in recent weeks, Ethereum has seen dormant ICO-era whale wallets come to life. In the past week, a dormant pre-mine address that held 185 ETH worth $302,096 revived after 8.1 years.
Binance moving to end support for BUSD
As part of its gradual move to end support for the BUSD stablecoin by 2024, crypto exchange Binance moved to burn several idle Binance-pegged tokens this week.
On Sept. 14, Binance set fire to idle Binance-pegged tokens, namely TUSDOLD (BSC), BUSD on the MATIC network, BUSD both on the BSC and BNB networks and BUSD on the TRX network.
In August, Binance announced it would gradually end support for BUSD, urging users to convert the token to other crypto assets by February next year. Paxos stopped issuing the stablecoin in February following a regulatory crackdown on the BUSD token.
