OnlyFans invests in Ethereum: how much did it affect the crypto’s price?

Recently, Fenix International Limited, the well-known company behind OnlyFans, acquired Ethereum (ETH), one of the most prestigious crypto assets. But how much did this affect the coin’s price? 

Let’s look at all the details below. 

The purchase by OnlyFans and the price considerations of Ethereum 

As anticipated above, the British subscription-based adult content company, OnlyFans, entered the cryptocurrency arena in conjunction with a period of significant business expansion.

According to filed financial data, OnlyFans has invested in Ethereum (ETH) worth $19,889 million

However, the value of acquired ETH was released immediately, resulting in an impairment loss of $8,455 million by 30 November 2022. As a result, Ethereum’s remaining accounting value stands at $11,434

million

This depreciation underscores how the initial investment in Ethereum has lost value, in line with recent fluctuations in the global cryptocurrency market.

According to the submitted documentation, the cryptocurrency investment falls under the category of investment in intangible assets with an “indefinite useful life.” 

This move by OnlyFans into the cryptocurrency world could have multiple implications, highlighting a deliberate purpose of diversification and adoption of blockchain technology.

Moreover, this move comes in parallel with Ethereum’s growing recognition as an attractive asset due to its potential as a solid store of value. 

Indeed, the increasing integration of Ethereum into mainstream financial institutions adds further appeal to this asset as a sustainable investment option.

In addition, this investment could be linked to Ethereum’s ability to act a reserve, potentially reducing the magnitude of its fluctuations in response to movements in conventional financial markets.

Sponsored

In addition to its foray into cryptocurrencies, OnlyFans has previously expanded its financial strategy through initiatives regarding non-fungible tokens (NFTs). 

In fact, in February 2022, OnlyFans introduced a feature that allows users to view verified NFTs as their profile images. At present, the adult platform only allows the use of NFTs minted on the Ethereum blockchain.

Focus on the price of the Ethereum crypto 

During the month of August, Ethereum experienced the cancellation of all profits that had remained for a period longer than a month. 

The alternative cryptocurrency leader suffered a sharp drop from the level of around $1,800 recorded two weeks ago and has since fluctuated in the $1,600 range.

At the moment, the value of ETH is pegged at about $1,649, denoting a decline of more than 11% over the past 30 days, according to CoinMarketCap. This correction in prices has also produced an effect on the overall profitability of the network.

In addition, a recent Glassnode update found that about 55.42% of all ETH addresses were profitable, marking the smallest value in seven months. 

The level of profitability can also be assessed through the Net Unrealised Profit/Loss (NUPL) indicator. The latter basically represents the difference between unrealized profit and unrealized loss and makes it possible to determine whether the network is overall in a profit or loss state.

Although the positive value confirmed that the network was in a net gaining phase, the profitability degree experienced a marked decrease. So, the NUPL dropped to 0.032 from the value of 0.13 before the correction in prices.

It is also interesting to note that the bearish trend in prices has failed to dent the enthusiasm of ETH stakeholders. Ignoring the ups and downs of the market, the amount of funds locked in Ethereum smart contracts has in fact continued to reach new peaks.

According to the latest available update, more than 28 million ETH were staked on the network, equivalent to about 23% of Ethereum’s entire circulating supply. 

This significant increase in the amount of funds in play also highlights the confidence investors have placed in this mechanism, which was previously absent. Finally, since the implementation of Shapella’s hard fork, the supply of ETH has increased by more than 50%.