Vitalik Buterin’s multi-signature wallet has recently offloaded 760 Ether (ETH) as the cryptocurrency faces significant price pressure. The Ethereum co-founder has reiterated that his ETH sales since 2018 have been directed towards charitable causes, non-profits, and other meaningful projects rather than for personal gain.
ETH Faces liquidity challenges following ETF launch
The Ethereum network has been grappling with liquidity issues, particularly since the launch of ETH exchange-traded funds (ETFs). Liquidity on US-based centralized exchanges has declined by 20%, with an average market depth of 5%, now at $14 million. These challenges have contributed to a 6% drop in ETH’s price over the past week.
Buterin’s linked wallet engages in selling activity
Data from Spot On Chain reveals that a multi-signature wallet linked to Vitalik Buterin has been actively selling Ether. The wallet received around 3,800 ETH, valued at approximately $10 million, on August 9 and August 30. Since then, it has sold 760 Ether for 1.835 million USDC, with an average price of $2,414. The most recent transaction occurred on September 8, coinciding with increased selling pressure in the broader cryptocurrency market.
Ethereum Foundation joins the selling trend
The Ethereum Foundation has also been involved in recent selling activities. Over the last four days, the foundation sold 450 ETH for 1.029 million DAI and an additional 550 Ether worth approximately $1.28 million. The average selling price for these transactions was $2,324.
After Vitalik, the Ethereum Foundation is the next to sell $ETH!Just 10 minutes ago, the #EthereumFoundation sold 450 $ETH for 1.029M $DAI.In total, they’ve sold 550 $ETH ($1.28M) at an average price of $2,324 in the past 4 days.Follow @spotonchain for more updates… https://t.co/d2bP0WLo9C pic.twitter.com/cjgFvMeOvw
— Spot On Chain (@spotonchain) September 9, 2024
Despite a marginal recovery, ETH’s price remains down by over 6% in the past week and 25% over the last two months. According to the latest data, ETH is trading at an average price of $2,321, with a 24-hour trading volume of 31%, reaching $12.4 billion.
This ongoing selling activity by both Vitalik Buterin’s linked wallet and the Ethereum Foundation has raised concerns about the potential for further downward pressure on ETH’s price. Buterin maintains that his sales are intended to support valuable projects within the Ethereum ecosystem and broader charitable causes, not for personal profit. He also indicated that he does not plan to invest in Layer-2 tokens or other project tokens shortly, preferring to use proceeds to fund initiatives he believes will positively impact the community.
As the market reacts to these developments, Ethereum traders and investors closely watch for signs of stability. The actions of key players like Buterin and the Ethereum Foundation continue to be a focal point, influencing market sentiment and price movements. With ETH’s current trading conditions, the market remains uncertain, and further developments could shape the cryptocurrency’s near-term trajectory.
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