EthFinance

I saw a take that one reason $ETH price is suppressed is because it's the primary target for hedging via shorts:

1. $ETH has by far the most liquidity against stables, especially on defi/dex
2. If the crypto market crashes, $ETH is very likely going down with it

So whales can ape positions into whatever tokens ($BTC, $SOL, whatever) and hedge their positions by shorting $ETH.

If this turns out to be true, and it's responsible for holding down the price, what should we be doing differently? Is there something that "the devs" should do about this?

Kind of a curse of being the best at something while also correlated with a bunch of other assets.

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How do you measure buy pressure independently of sell pressure?

Would be curious to read more about the Ethena thing if you stumble on it!

yes, but the reason that strategy is so consistently effective is precisely because there is less buy pressure on ETH. it sells off more on downturns vs. BTC and SOL, and doesn’t get bought up as fast.

I read some analysis that argued that Ethena was a factor in this, but I also think there is some supply overhang from 2021 round trippers (imo).

This highlights Ethereum’s dual-edged sword: unmatched liquidity and adoption, but also a magnet for hedging. Maybe the answer isn’t to stop it, but to grow use cases that drive value beyond just market speculation.