A cryptocurrency trader who turned his investment of $125,000 into $43 million is now left with a smaller amount.
Four months ago, the trader deposited $125,000 to Hyperliquid, a prominent decentralized exchange, and began to take long positions in Ethereum via two accounts, as per the on-chain analytics platform Lookonchain.
The trader kept putting every dollar gained into his ETH long positions and eventually built a massive 66,749 ETH position worth $303 million. At one point, his total account equity peaked at over $43 million, which meant he generated a 344 times return.
However, the recent market downturn lowered the profits, and the trader closed his ETH positions on Aug. 18.
The trader secured a net profit of $6.86 million following the liquidation, which generated a 55 times return. It means his eventual return is only 15% of the maximum return he could potentially generate if he liquidated his ETH positions at the peak.
After Bitcoin, Ethereum is the second-largest cryptocurrency, which has a market cap of more than $526 billion. Let’s compare the price trajectory of BTC and ETH over different timeframes.
Over the last seven days, BTC has fallen more than 2%, but ETH has risen more than 2%. Over the last month, BTC has fallen nearly 1.5%, but ETH has risen more than 20%.
The recent Ethereum surge can primarily be attributed to the broader crypto rally and the growing demand for ETH as a reserve asset among crypto treasury firms such as Tom Lee’s BitMine Immersion (Nasdaq: BMNR).
Disclaimer: The content above is intended for informational purposes only and should not be taken as financial advice. Do your own research before investing.
