In a notable event in the cryptocurrency market, an anonymous trader incurred approximately $9.73 million in losses after selling an irreplaceable token (NFT) named CryptoPunk 3100. The trader, who bought this NFT a year ago for $15.79 million or 4,500 units of Ethereum, recently sold it for 4,000 Ethereum. Due to the significant decrease in the price of Ethereum during this period, the trader’s final loss escalated considerably. At the time of purchase, each unit of Ethereum was priced at $3,509, but at the time of sale, its price had dropped by over 57%. This drastic drop in the price of Ethereum caused the overall value of the transaction to plummet, resulting in a final loss of $9.73 million for the trader. This incident highlights the high fluctuations in the NFT and crypto market, clearly indicating that assets that once held high value may face severe declines. However, this trader was not the only victim of the Ethereum price crash. Ethereum has lost nearly 55% of its value in the past year and has decreased by 68% compared to its historical peak in the last three years. According to the CEO of Coin Bureau, most Ethereum investors are currently at a loss. He has attributed this decline to the decrease in the market value to real value ratio (MVRV), differences in profitability, and lack of demand. The Ethereum MVRV index dropped below 1.0 in March, indicating that most Ethereum investors are at a loss unlike their Bitcoin market counterparts. While global liquidity increase could improve this situation, given the escalating trade war between the US and China, investors appear to face even greater losses.
