Ethereum Co-Founder Vitalik Buterin Sells ETH Amidst Market Volatility
In a surprising move, Ethereum’s co-founder, Vitalik Buterin, has reportedly sold a portion of his Ethereum holdings. This comes as the value of Ethereum’s ETH/USD pair experienced a 4% decline on Tuesday. However, despite the dip, Ethereum managed to maintain its position as the second-highest-valued cryptocurrency, with a market cap of $453 billion.
According to PeckShield, a leading blockchain security company, Buterin’s address known as “#vitalik.eth” moved 30 ETH to “#Railgun” and exchanged approximately 27.63 ETH for 100K USDC, which were then transferred to “#Base.” This trading activity by Buterin has grabbed the attention of the crypto community, as it potentially indicates his belief in the long-term prospects of Ethereum.
While Ethereum’s price witnessed a dip, its daily trading volumes experienced a significant surge, with a 68% increase that reached $33.29 billion. This surge in trading activity comes as new capital flows into Bitcoin, and anticipation surrounds the upcoming Bitcoin supply halving event.
One of the key factors driving Ethereum’s potential for a price increase is the ongoing decrease in supply on various exchanges. Glassnode, a leading on-chain market intelligence firm, revealed that ETH holdings on exchanges have dropped to a 20-month low, with a recorded decrease of 13.14 million ETH in the past 90 days.
Additionally, data from Dune Analytics shows that approximately 31.58 million ETH, valued at nearly $119.8 billion, have been staked. This translates to around 26.3% of the total supply of ETH being held and removed from the trading market. More than 987,000 validators are participating in this staking process, further contributing to the diminishing supply of Ethereum.
However, the last 24 hours have not been entirely smooth for Ethereum, as it faced liquidations worth over $209 million. At the time of writing, ETH is trading at $3,600, reflecting a 2.20% decrease over the last 24 hours.
Despite the recent volatility, Ethereum remains a leading force in the crypto market, with traders closely watching Buterin’s moves and the ongoing developments in the ecosystem. The future of Ethereum looks promising, with its decreasing supply and increased interest from investors and validators alike.
Analyst comment
Neutral news.
As an analyst, the market for Ethereum may experience some short-term volatility due to the sell-off by Vitalik Buterin and the recent price decline. However, the decrease in supply on exchanges and the growing interest from investors and validators suggest a positive outlook for Ethereum’s long-term prospects.
