Blockchain data shows that Sun’s wallet, labeled as ‘0x7a9…3095,’ has moved 120,000 eETH (Ethereum-pegged tokens) into the Swell L2 liquid restaking protocol.
Justin Sun disrupts DeFi
This significant deposit accounts for 46% of all funds in the Swell L2 protocol. The injection of 120,000 eETH represents a noteworthy influx of capital into the platform.
Protocols like Swell L2 for liquid restaking allow users to stake Ethereum and earn a liquid token like eETH, usable in diverse DeFi applications for extra gains. Sun’s significant deposit has positioned him as the foremost player on Swell L2.
Sun’s venture into liquid restaking aligns with his extensive engagement in decentralized finance (DeFi). In the past year, he notably intervened in preventing a liquidity crisis on Curve Finance by acquiring $2.3 million worth of CRV tokens.
Swell L2 has experienced rapid expansion, nearing a total value locked (TVL) of $3 billion as it prepares for the launch of its native governance token. Sun’s significant deposit is poised to further boost the protocol’s TVL, solidifying its standing in the DeFi ecosystem.
Justin Sun’s prominence on Swell L2 is striking, prompting considerations about the platform’s future decentralization and governance. Regulators and industry observers are likely to closely monitor substantial deposits from influential figures in the crypto sector.
Justin Sun and the Ethereum ecosystem
Sun demonstrates a strong interest in Ethereum-based cryptocurrencies, frequently executing significant transactions involving Ethereum (ETH), Shiba Inu (SHIB), and other tokens.
On May 4, in a recent transaction, Sun transferred eETH valued at around $376 million into the Swell L2 protocol, comprising 46.6% of all deposits since its inception.
While Sun openly acknowledges his involvement in staking and liquid restaking platforms, he refutes the idea that his intention is to profit from his high-volume transactions.
Rather than seeking direct profit, the Tron founder clarifies that his role is to serve as an advisor to liquid restaking teams, providing guidance and support.
Sun has articulated his expansive vision for staking and restaking, underscoring their capacity to expand and garner worldwide interest. He envisions these platforms as substantial revenue streams for international businesses and institutions.
He also foresees that by reinvesting profits into supporting users, developers, and the wider community, these platforms can encourage collaboration and stimulate growth.
Though Sun’s remarks may not specify a particular protocol or encompass the entire industry, his significant investment in Swell L2 indicates his active pursuit of his vision.
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