"Crypto markets had a day of reckoning to close out last week with Ethereum (Crypto:ETH), the decentralized powerhouse fueling DeFi and NFTs, endured a savage blow in the crypto market's worst 24 hours on record. Friday's $19 billion liquidation cascade-nine times February's wipeout and 19 times the FTX collapse-ignited by President Trump's tariff threats on Chinese imports, ravaged risk assets. ETH cratered over 10% from its peak, hitting a low of $3,750."
"The Grayscale Ethereum Mini Trust ETF (NYSEARCA:ETH), a low-cost (0.15% expense ratio) conduit for Ether exposure, echoed the turmoil: shares plunged to $36.72 and currently trading up slightly at $38.29. Year-to-date the Grayscale Ethereum Mini Trust ETF is up 17.66%, making it a more stable play on ETH. The Leverage Trap That Snared ETH Leverage fueled the frenzy with a 10% ETH drop on 10x longs, leaving those holding those positions with complete loses."
"ETH's DeFi edge amplified agony-yield chasers in lending pools triggered smart contract liquidations of billions in wrapped assets at $3,500. Post-crash, flows shifted to Bitcoin for safety. Amid $428.52 million in ETH ETF outflows, flagship ETHE lost $20.99 million Monday-yet the Mini Trust gained $11.75 million weekly, boosting assets to $1.53 billion. Grayscale's staking of 300,000+ ETH injected $150 million into proof-of-stake, unlocking 4%+ yields for holders sans node hassles. With 2025 spot inflows at $14.48 billion pre-dip, institutions eye this as a fear-buy opportunity."
Ethereum fell more than 10% during a $19 billion liquidation cascade sparked by tariff threats on Chinese imports, sending ETH to a low near $3,750. Massive leverage magnified losses, with a 10% drop wiping out 10x longs and platforms registering 1.6 million margin calls, 88% tied to 100x bets. DeFi lending pools triggered smart-contract liquidations of billions in wrapped assets around $3,500. Market flows moved toward Bitcoin as $428.52 million exited ETH ETFs; flagship ETHE lost $20.99 million while the Grayscale Ethereum Mini Trust recorded an $11.75 million weekly inflow, lifting assets to $1.53 billion. Grayscale's staking of 300,000+ ETH added $150 million into proof-of-stake, with 4%+ yields and drawing institutional interest amid $14.48 billion 2025 spot inflows pre-dip.
Read at 24/7 Wall St.
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