Altcoins News
By Maheen Hernandez
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Ethereum (ETH) could face a period of instability in the coming weeks, according to Markus Thielen, head of research at 10x Research.
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As of now, Ether is trading around $3,623, showing a 49% gain over the past 30 days, according to data from Nansen.
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One of the key concerns raised by Thielen is the rising cost of borrowing wrapped Ether, or wETH — a tokenized form of ETH widely used on decentralized finance (DeFi) platforms…
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Thielen explained that these strategies rely on low borrowing costs and a stable peg between staked Ether (stETH) and ETH.
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"The variable cost of borrowing wETH has gone up, and it’s unprofitable to borrow ETH now," Thielen stated.
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Moreover, Thielen noted that over 90% of Ether loans on Aave are tied to variable interest rates.
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Despite these near-term risks, Thielen remains optimistic about Ethereum’s long-term trajectory.
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In addition to technical pressures, market behavior is also playing a role. The ETH/BTC ratio — which measures Ether's relative strength to Bitcoin — has risen 34% over the past…
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While Thielen’s analysis highlights potential vulnerabilities in Ethereum’s DeFi infrastructure, it also underscores the evolving nature of crypto market dynamics.
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Looking ahead, much will depend on whether borrowing rates normalize and if the ETH-to-stETH peg remains stable.
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For now, investors and traders may need to brace for short-term turbulence, especially during what is expected to be a quieter summer stretch in crypto markets.
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