๐จ How did the KelpDAO breach impact ETH prices?
In short ๐
๐ป Short-term: A massive sell-off of $ETH occurred after the exploit โ strong selling pressure and a price drop.
๐ง Liquidity shock: Billions of dollars exited DeFi + unwinding of leverage positions โ reduced demand for ETH.
โ ๏ธ Market contagion: Liquidation of positions and additional pressure due to collateral issues (rsETH).
๐จ Psychological impact: Loss of confidence in DeFi projects and restaking โ investors shifting to $BTC and stablecoins.
๐ However, in the long run: Ethereum itself was not technically affected, and the crisis could lead to: โ๏ธ Improved security โ๏ธ A stronger return of liquidity โ๏ธ Increased trust in ETH as a core asset
๐ง In summary: The hit was in DeFiโฆ but ETH was affected through liquidity and confidence, not due to any fault in itself.
๐ต Liquidity is centered in: $USDT $BUSD $USDC ๐จ Monitor the market before any entry Opportunities come at the right time #trading #crypto #Binance