CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Español
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • Español
  • bitcoin
    BTC$22,868.00
  • ethereum
    ETH$1,642.88
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
      • Español
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    • Español
    Home » Crypto News » ETHBTC » ETH Price Skyrockets 15% to $450 on Uniswap Following One $18-Million Transaction

    ETH Price Skyrockets 15% to $450 on Uniswap Following One $18-Million Transaction

    Author: Martin Young

    Last Updated Aug 11, 2020 @ 08:32

    One very large transaction on the Uniswap DeFi protocol caused the price of Ethereum to briefly spike to $450 a few hours ago, leaving the crypto community wondering what happened.

    Following what appears to be the actions of a single whale, the price of ETH skyrocketed to just under $450 according to the Uniswap v2 ETH/USDC price ticker in late trading on August 10. This represented an increase upwards of 15%.

    The trade involved a series of swaps totaling almost $18 million in USDT to purchase just over 40,000 ETH. Within a couple of hours, the price of Ethereum had returned to its range-bound channel at around $395.

    eth_uniswap
    ETH/USD Chart, Uniswap V2. Source: Uniswap

    Realt Platform COO, David Hoffman, postulated that it was either a single part of a greater DeFi arbitrage transaction or someone wanting a non-KYC long position on Ethereum.

    Big Transaction, Big Price

    Developer Adam Tyree Finch added that the transaction resulted in the loss of around $2 million due to slippage, and it was unlikely to be an arbitration attempt as there are better methods than using automated market makers such as Uniswap. Laundering money this way would also be traceable, he added.

    Delving deeper into the address used it was ascertained that the ETH was moved to what appeared to be Binance and the Tether used to buy it came from Huobi originally.

    ADVERTISEMENT

    Partner at Cinneamhain Ventures, Adam Cochran, stated that the slippage, which worked out at almost 11%, wasn’t that bad;

    “The most impressive part here is the slippage wasn’t actually that bad! Don’t get me wrong it was a lot but no DEX could have handled that slippage a year ago.”

    The questions as to why someone would do this at such a high cost continued to flow along with the speculation that they may have been really trying to avoid any KYC requirements associated with centralized exchanges that have much greater liquidity and less slippage.

    DeFi Liquidity in Question

    The outcome of it all is the confirmation that DeFi is still not liquid enough to facilitate such large transactions and a high price will be paid for whales wanting to take this route.

    Uniswap volumes have been surging, however, as observed by financial writer Zack Voell who pointed out that the decentralized token swapping protocol is catching up with the centralized crypto exchanges.

    Uniswap did $167M in volume over the last 24 hours. That’s 82% of Bitstamp, 76% of Bitfinex, almost 50% of Kraken, and more than Bitso, Bittrex, and Gemini combined.

    Pretty incredible TBH.

    — Zack Voell (@zackvoell) August 11, 2020

    DEX volumes are increasing and may even surpass those seen in CeFi even if slippage is still huge by comparison.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • eth_pyramid
      Report: PlusToken-Like Ethereum Ponzi Could Dump ETH Price
    • unicorn_ethereum_cover
      3.5 Million ETH Locked in Uniswap as Total Liquidity Approaches $3 Billion
    • uniswap_logo-min-min
      Uniswap Launches Its Dedicated UNI Token: ETH Gas Prices Soar Again
    Tags: DeFi Ethereum Ethereum (ETH) Price Tether (USDT)
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Martin J. Young
    More posts by this author

    Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn

  • bitcoin
    BTC$22,868.00
  • ethereum
    ETH$1,642.88
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!