Ethereum co-founder Vitalik Buterin has recently made headlines following his withdrawal of 760 ETH. This transaction has sparked speculation about its potential impact on the Ethereum market, as investors wonder how his external wallet activity could affect the cryptocurrency’s price.
The recent withdrawal is part of a larger trend involving wallets linked to both Buterin and the Ethereum Foundation, which have been actively selling significant amounts of Ether. These sales have contributed to a bearish sentiment that pushed Ethereum’s price down to around $2,150 before a slight recovery.
Vitalik Buterin’s Withdrawal Details
According to reports, the wallet tied to Buterin has been actively selling Ether after receiving 3,800 ETH through two transactions on August 9 and August 30. The most recent sale, just 21 hours ago, involved 760 ETH sold for approximately 1.835 million USDC, translating to around $2,414 per ETH.
The streak of aggressive sales from this wallet has fueled speculation in the crypto community, with some accusing Buterin of “dumping” his ETH holdings. However, Buterin has consistently denied these claims, asserting that the funds are used to support Ethereum ecosystem development and philanthropic causes. Despite these reassurances, the continued sales from wallets attributed to him have heightened bearish pressure among investors.
Broader Implications for the Market
Buterin isn’t the only major player selling off large quantities of ETH. The Ethereum Foundation has also offloaded substantial amounts, selling over 3,066 ETH in 2024 alone. These ongoing sales have raised concerns about the overall health of the Ethereum market, as large-scale liquidations by major holders have made it more difficult for ETH to maintain its value.
In addition to Buterin and the Foundation’s activities, one of Ethereum’s largest whales recently liquidated 28,554 ETH, worth approximately $64.4 million, to repay a debt on the decentralized lending platform Aave. This further intensified the sell-off pressure on ETH, adding to the market’s challenges.
The cumulative effect of these actions has led some analysts to warn that ETH could fall below $2,000 if the sell-off trend continues.
Calls for Greater Transparency
With the growing concerns surrounding these sell-offs, many in the Ethereum community are calling for increased transparency from Buterin and the Ethereum Foundation regarding their financial strategies and cryptocurrency sales.
Insiders have suggested that the Foundation’s sales are part of a pre-planned financial strategy aimed at covering operational expenses, including grants and salaries. Aya Miyaguchi, the executive director of the Ethereum Foundation, has clarified that converting portions of ETH into stablecoins like DAI is necessary to meet financial obligations.
However, the ongoing perception that Buterin and the Foundation are “dumping” ETH has cast a shadow over investor confidence. As this situation develops, the market remains on edge, with stakeholders closely monitoring how future withdrawals might affect Ethereum’s price trajectory. Whether the market will see a recovery or further decline is something investors are keenly awaiting.
