Ethereum and BUSD Experience Historic Dormant Coin Movements

Ethereum and BUSD Dormant Coin Revival

Ethereum and Binance USD (BUSD) have experienced significant dormant coin movements. The average age of both tokens in wallets has notably decreased after a period of stagnation. Ethereum's dormant age dropped by 26 days, while BUSD's fell by 378 days. These shifts may be linked to FTX-triggered liquidations and sell-offs, with FTX authorized to sell its crypto assets in controlled batches.

FTX Liquidation Impact

FTX, holding over $3.4 billion in crypto assets, received approval to sell its holdings. Initial sales are capped at $50 million for the first week, increasing to $100 million weekly. Notably, Bitcoin and Ethereum require a 10-day notice period before selling. This movement has coincided with the reactivation of dormant Ethereum whale wallets, including a pre-mine address holding 185 ETH that became active after 8.1 years.

Binance's Strategic Shift Away from BUSD

Binance is gradually phasing out support for BUSD, planning to complete this transition by 2024. The exchange has initiated the burning of several idle Binance-pegged tokens, including BUSD and TUSDOLD across multiple networks. This move follows Paxos halting the issuance of BUSD in response to regulatory pressures earlier this year. Binance encourages users to convert BUSD to other cryptocurrencies by February next year.

The ongoing developments within the Ethereum and BUSD ecosystems highlight significant shifts in the cryptocurrency landscape, driven by regulatory actions and strategic business decisions.