Justin Sun’s on-chain operations: Keen on participating in EigenLayer and Swell staking, and purchasing a large amount of ETH

24-05-07 18:23

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Original title: "Justin Sun's on-chain operations: "Gold rush" re-staking EigenLayer and Swell L2, bottom-fishing ETH"

Original author: Weilin, PANews

Justin Sun's on-chain "money ability" is obvious to all, and his wallet's every move is continuously tracked.

Public project information and on-chain data show that the wallet associated with TRON founder and CEO Justin Sun has won the first place in Puffer Finance's points since February and became the first airdrop recipient of EigenLayer in April. On May 4, Justin Sun also deposited 120,000 eETH into Ethereum's liquid re-staking protocol Swell L2, worth $376 million. It is worth noting that this transfer of eETH accounts for 46.6% of Swell L2's total deposits.

According to statistics from on-chain analyst Yu Jin, Justin Sun's related addresses hold a total value of approximately US$4.165 billion in crypto assets. In terms of large purchase targets, from December 26, 2023 to April 24, 2024, Justin Sun purchased a total of 323,799 ETH through CEX withdrawals and on-chain purchases, worth approximately US$1.0248 billion, with an average price of US$2,942. This is considered by the market to be optimistic about the future trend of Ethereum prices.

In this article, PANews takes stock of Justin Sun's recent on-chain operations to see how this crypto whale is accumulating on-chain wealth and what targets he has purchased.

Frequent on-chain activities: $376 million worth of eETH deposited into Swell L2

Recently, Justin Sun has shown a strong interest in Ethereum ecosystem re-staking projects, and has participated in four re-staking projects, Swell L2, Ether.Fi, EigenLayer, and Puffer Finance.

The latest development is that he has recently been deeply involved in the re-staking protocol Swell L2. On May 5, according to AI Aunt @ai_9684xtpa, an address 0x7a9...3095 related to Justin Sun deposited 120,000 eETH worth $376 million into Swell L2. These eETH are deposit certificates for depositing ETH into the EtherFi liquidity re-staking protocol. The current four-week pre-launch deposit activity of Swell will end on May 8. As of around 5 p.m. on May 6, the total deposit volume of Swell L2 reached $936.45 million, with 34,378 depositors. Justin Sun's personal pledged funds accounted for 46.6% of the total deposit volume of Swell L2.

Swell L2 is a Layer 2 Rollup chain that will be released in Q3 of this year by the liquidity re-staking project Swell Network. When Swell L2 is launched, depositors in the pre-launch phase will receive SWELL airdrops and can obtain future airdrops from protocols built on Swell L2.

In March of this year, Justin Sun's address also interacted with Ether.Fi, depositing 120,000 ETH 5 days before the end of the Ether.Fi airdrop event, and obtained 22,000 ETHFI, worth $105,000. On May 6, the wallet held 48,374.30 ETH.

In addition to participating in Swell L2 and Ether.Fi, on April 30, according to data from Spot On Chain, Justin Sun became the biggest winner among the top airdrop recipients of $EIGEN in the first season, collecting a total of 3,559,570 $EIGEN. Assuming that the fully diluted market value (FDV) of the Eigenlayer project is about $15 billion (similar to Ethena), the price of $EIGEN may reach around $10, and these recipients will earn millions of dollars.

The fourth re-staking project that Justin Sun has participated in this year is Puffer Finance. On February 19, the official website of Puffer Finance showed that the pledge amount of Puffer Finance exceeded $1 billion, and the participating addresses exceeded 200,000, of which Justin Sun ranked first in points. Puffer Finance is the first native liquidity staking protocol on the EigenLayer platform. Justin Sun's operation also amazed the community: "Does Brother Sun always do airdrops like this?"

Justin Sun's frequent on-chain operations on the staking and re-staking tracks also aroused heated discussions in the community. In response, Justin Sun responded on the X platform on April 30, sharing his vision for staking and re-staking. He emphasized their growth potential and ability to attract global attention.

He said: "Restaking and staking businesses have experienced long-term development and have achieved very fruitful results. In the future, we will also split out independent brands, independent operating entities, and independently operate to help empower the staking business of all blockchains. We will also raise funds from outside and accept investments from top international investment institutions. The group's profits will also feed back to users, developers, and communities, and build prosperity together!"

In addition to these on-chain staking activities, the community also rumored that Justin Sun participated in the staking of Bitcoin L2 project Merlin. Although it has not been confirmed, his HTX and TRON have reached cooperation with Merlin.

Purchased about $1.0248 billion of ETH in 6 months

In addition to investing a large amount of assets in the re-staking track, Justin Sun also frequently transferred assets on the chain and bought ETH. On-chain analyst Ember @EmberCN analyzed Justin Sun's asset transfer activities in the bull market. First, he destroyed 1 billion TUSD through the TT2T...kU9N address from December 7, 2023 to January 30, 2024, which should be affected by Binance no longer supporting the use of TUSD for new coin mining. Then 2.1 billion USDT was minted between December 9, 2023 and February 23, 2024.

These minted USDT basically flowed into Binance, and a total of 2.525 billion USDT was transferred to Binance between December 9, 2023 and April 3, 2024.

After USDT started to be transferred to Binance, Justin Sun began to continuously buy ETH and withdraw it to his Ethereum wallet.

After analysis, from December 26, 2023 to April 24, 2024, Justin Sun purchased a total of 323,799 ETH through CEX withdrawal + on-chain purchase, worth about $1.0248 billion, with an average price of $2,942. According to Ember Analysis, on April 23, Justin Sun held a total of about $4.165 billion in assets through multiple Tron and Ethereum addresses, of which the top three were 598,900 ETH (worth $1.902 billion); 5.364 billion TRX (worth $602 million); 458 million USDD (worth $458 million).

On May 1, Justin Sun's staged ETH bottom-fishing seemed to end. According to AI Auntie’s monitoring, within 5 hours, Justin Sun’s two associated addresses began to withdraw USDT from Binance, with a total of 67.65 million USDT transferred out, of which 30.37 million were deposited back to JustLend.

Justin Sun recently said that it is unlikely that an Ethereum spot ETF will be approved in May because the cryptocurrency needs "long-term education" with regulators. Nevertheless, Justin Sun's large-scale investment in Ethereum has sparked speculation that this may have an impact on Ethereum's price trend. As Justin Sun holds a large amount of ETH, investors expect a positive shift in market sentiment, which may drive Ethereum prices into a recovery phase.

In general, the frequent on-chain asset transfers and purchase targets have once again attracted users' attention to Justin Sun's whale holdings. According to data from blockchain intelligence platform Arkham, as of May 7, Justin Sun's crypto wallet had $1.085 billion, ranking first in the list of personal on-chain crypto asset holdings, surpassing LHV Bank founder Rain Lohmus, Ethereum co-founder Vitalik Buterin and others. His assets mainly include USD 280 million in USDD, USD 253 million in TRON native token TRX, USD 124 million in BTT, USD 92.79 million in BTC (1,457 pieces), USD 11.14 million in SHIB, USD 6.62 million in WIN, and USD 3.85 million in FLOKI.