Ethereum’s original Ether (ETH) token rose above $ 3,000 on March 22 when new data showed that Three Arrows Capital had invested at least $ 110 million in ETH in Lido’s liquidity pools.

According to Etherscan, a hedge fund manager from Singapore gave 36,401 ETH in liquidity to a “Curve stETH pool” on Lido using a third-party Ether wallet. As a result, it was eligible to receive at least 36,401 stacked Ether (stETH) tokens from Lido: to ensure low glide when these tokens were exchanged for real rewards from ETH plus effort.

A third-party Ethereum wallet acquired ETH from Three Arrow Capital. Source:
About an hour later, another ethereal address called a “box” sent 6,993 ETH (worth $ 21.12 million) to the Curve stETH pool, suggesting that Three Arrows Capital provided more liquidity to Lido’s treasury. In that case, the fund may have already handed over $ 130 million in Ether on March 22.

Participation in ETH 2.0?
The massive influx of Ether from Three Arrows Capital into the Lido stake pool preceded the launch of the new Ethereum validation system in the summer of 2022.

Ethereum will transform its network protocol from powerful Proof of Work to Proof of Stake, allowing users to validate transactions and add blocks to the Ethereum blockchain by collecting 32 ETHs or multiples for at least one year to earn an annual income. .

Total number of Ethereum validators per 21 March 2022. Source: Glassnode.
However, only 8% of the current supply of ETH has been included in ETH 2.0 contracts since its launch in December 2020, underlining that the average ETH user is reluctant to secure 32 ETH – about $ 100,000 by March 22. the price – for a year. This has created opportunities for providers of liquidity mining services such as Lido.

In particular, Lido allows users to unlock any amount of Ether to join the ETH 2.0 chain without locks. As a result, it now accounts for more than 80% of Ethereum’s floating mining area, with approximately $ 8.25 billion ETH stored in the basins at March 22 prices.

Lido vs other Ethereum liquidity mining pools. Source: Devi Lama
Thus, Three Arrows Capital intends to become an auditor on the Ethereum network through a less risky alternative such as a liquidity pool. In the meantime, it appears that the fund is also accumulating more Ether.

accumulation after storage
Address Three Arrows Capital received nearly $ 22.50 million in Ethereum tokens from wallets linked to the FTX and Deribit cryptocurrencies on March 22, less than an hour after depositing 36,401 ETHs in the Lido pool.

Related: Ethereum resistance stands at $ 3000 as the network prepares for “merger”

It was not clear if Three Arrows bought back the coins or just removed them for storage or for later placement. But in any case, the company has contributed to what appears to be a permanent depletion of Ether reserves on cryptocurrency exchanges, which many Ethereum traders see as a bullish sign.

However, independent market analyst PostyXBT highlighted $ 3,000 as a major bend for the Ethereum price, noting that only a decisive reversal over that mark could bring Ether closer to $ 3,500.

Source: CoinTelegraph