Has the Critical Process Begun for Ethereum? Buterin’s Ethereum Outflows Are Causing Concerns.

Ethereum co-founder Vitalik Buterin transferred around $10 million worth of #Ethereum to wallets associated with crypto exchanges in August, according to data tracked by Lookonchain. Arkham Intelligence data also shows that Buterin’s Ethereum address has seen an outflow of around 422,000 Ethereum since 2015. Over 840,000 Ethereum has been moved from the address in the last two years.

The transfers have led to speculation that Buterin is selling his assets to make a profit on Ethereum, especially since the cryptocurrency is trading 180% higher than its 2022 low of $885. However, Buterin denies these claims.

On August 31, Buterin clarified that he never sold his #Ethereum holdings to make a profit, and stated that all of his Ethereum transfers since 2018 have been to support various projects he considers valuable within the Ethereum ecosystem or a broader charity.

Interestingly, the August transfers coincide with the transfer of 84,000 Ethereum worth more than $207 million from the official Ethereum Foundation address to crypto exchanges. The Ethereum Foundation periodically sells a portion of its Ethereum holdings to fund development, research, and other initiatives important to the ecosystem.

The transfers occurred just before the Ethereum price peaked, which was followed by an 85% correction in price. Similarly, in May 2021, the Ethereum Foundation sold 350,000 Ethereum, which preceded a 50% price drop in #Ethereum markets.

Not all of the Ethereum Foundation’s sales occurred before major market corrections. For example, the sale of 100,000 Ethereum in December 2020 preceded a 630% price increase. Other factors behind the surge in Ethereum price were the launch of the Beacon ecosystem, which signaled Ethereum’s shift towards proof-of-stake, and the Federal Reserve monetary policy in the US, which increased the demand for risk assets, including cryptocurrencies.