Ethereum (ETH) co-founder Vitalik Buterin was spotted moving 600 ETH worth approximately $1 million into a Coinbase exchange wallet on Monday, August 21. Historical on-chain data examines how ETH price could react to this noteworthy transaction.

On Monday, August 21, an 0xd8d wallet address linked to Vitalik Buterin’s Ethereum Name Service (ENS) pseudonym —Vitalik.ETH was spotted moving 600 ETH, worth $1.01 million, into a Coinbase wallet. The wallet now holds only 3,935 ETH ($6.57 million) at the time of writing.

When large crypto investors move bits of their holdings into an exchange wallet, it typically means they are looking to cash out into fiat or trade in for other tokens.

On-chain data analysis explores how previous noteworthy outflows by Vitalik have moved the market to project how ETH prices could potentially react in the coming days.

Ethereum Price Declined 13% After Vitalik Sold In April

Large transactions from recognized high-net-worth holders and influential figures like Vitalik Buterin often influence the markets significantly. Historical data culled from Arkham Intelligence shows how Ethereum’s price sank by 13% barely a week after Vitalik made a significant outflow in April.

How Will Ethereum (ETH) Price React to Vitalik Outflow | Vitalik.ETH/0xd8d wallet, Aug 2023. Source: Arkham Intelligence

As shown in the chart below, Vitalik had moved out a whopping $283 million worth of ETH on April 19. Interestingly, ETH price began to wobble within just 48 hours and later declined 13% from $2,102 to $1,840 by the close of April 25.

Also, back in 2021, Vitalik’s alternate 0Xabf address, which currently holds 248,027 ETH (~$415 million), exhibited a similar premonitory pattern.

How Will Ethereum (ETH) Price React to Vitalik Outflow | Vitalik.ETH/0Xabf wallet, Aug 2023. Source: Arkham Intelligence

On November 5, 2021, Vitalik moved out a total of 19.5 billion worth of ETH over an eventful period of two weeks. That period coincided with Ethereum losing its all-time high of $4,890, which it hasn’t reclaimed ever since.

Crypto investing, simplified. Get ETH price predictions here.

Crypto Traders Yet to React to Vitalik’s Outflow

At the time of writing, 12 hours after Vitalik’s most recent noteworthy $1 million transaction, Ethereum traders are yet to make significant reactionary moves. According to IntoTheBlock‘s aggregate Exchange On-chain Market Depth, the bulls still dominate ETH trading orders’ balance.

As depicted below, the bulls currently have the upper hand with 277,690 ETH buy orders, towering above the bears’ 145,000 ETH sell orders.

How Will Ethereum (ETH) Price React to Vitalik Outflow | Aggregate Exchange Order Books, Aug 2023. Source: IntoTheBlock

The Exchange On-chain Market Depth chart shows the real-time price distribution of active Ethereum orders placed across recognized crypto exchanges.

As seen above, the “Buy/Ask” wall is significantly higher “Sell/Bid” side by nearly 132,700 ETH orders. This shows that Ethereum market demand remains steady despite Vitalik’s noteworthy $1 million cash out.

In summary, strategic investors will be looking for further notable transactions on Vitalik’s addresses and Ethereum Foundation wallets.

ETH Price Prediction: Slow Recovery to $1,800

Ethereum price could react to Vitalik’s latest outflow with gradual higher lows toward $1,800 as the market FUD subsides.

The In/Out of Money Around Price data, which shows the price distribution of current holders, also validates this mildly-positive prediction.

However, the 1.8 million addresses bought 2.54 million ETH at the maximum price of $1,720, which will offer initial resistance. But, if a bullish momentum grows, the strategic traders could promptly raise their bids, pushing the ETH price toward $1,800.

Ethereum (ETH) Price Prediction | IOMAP data, Aug 2023 | Source: IntoTheBlock

Conversely, the bears could push the ETH price below $1,600 if Vitalik Buterin makes more outflows in the coming days.

But, as shown above, 1.88 million addresses had bought 2.2 million ETH at the average price of $1,620. They could offer considerable support if they HODL.

However, ETH could slide toward the $1,500 if that support level folds.

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New memecoin Bonk saw a 300% price return in the first 8 days, compared to 141 days for Shiba Inu and 1,253 days for Dogecoin
New Solana-based memecoin Bonk (BONK) has seen exponential growth since its launch on December 25, 2022, quickly surpassing 300% price return in the first 8 days – more specifically, achieving a 305.8% price return on January 2, 2023. Compared to popular memecoin Shiba Inu (SHIB), 141 days were taken to exceed the same threshold, since its launch in August 2020. Bonk’s phenomenal growth is further contrasted with that of the first-ever memecoin Dogecoin (DOGE) launched in 2013, where 1,253 days lapsed before DOGE went beyond the 300% price return threshold.
Within 11 days from its launch, Bonk’s price peaked and hit an all-time high of $0.00000487 on January 5, 2023, and saw a gain of 3,649%, a 36X increase in value. BONK crossed $200 million in market capitalization that same day, peaking at a market cap of $204,964,399 before dropping to around $82 million on January 7, and subsequently sliding to $62 million.
Bonk’s launch strategy, which involved airdropping 50% of its total supply to a wide base of Solana users, drove its price spike
Bonk’s launch involved airdrops in multiple stages. First announced in a tweet on December 10, 2022 and in their one-pager, 20% of BONK’s supply was to be airdropped to holders of 40 Solana NFT collections – some notable ones include y00ts, Solana Monkey Business, and Degen Ape Academy.
Subsequently, 15% of its total supply were airdropped to early openbook traders, 10% to Solana artists and collectors and finally 5% to developers of the Solana blockchain. To sum, the airdrop made up 50% of its total supply of 100 trillion coins, resulting in a high market capitalization days upon launch and generated buzz on crypto Twitter, which further hyped up demand.
Bonk’s airdrop tactic greatly contrasts Shiba Inu’s infamous SHIB token airdrop in August 2020. SHIB’s anonymous creator, Ryoshi first locked 50% of total token supply in Uniswap to ensure liquidity, and then sent the remaining 50% of all tokens to Ethereum co-founder, Vitalik Buterin’s ERC-20 wallet. Unexpectedly, Vitalik burned 90% of the tokens received, and donated the remaining 10% to charity.
Bonk’s phenomenal growth contributed to Solana’s 63% price pump
The financial impact of FTX’s collapse extended to Solana, given that the now-defunct cryptocurrency exchange owned large sums of Solana’s native token, SOL. With multiple projects abandoning the Solana ecosystem, SOL has been on a downward trend since.
Yet, with Bonk creators setting out to flip the toxic ‘Alameda’ tokenomics narrative through the Solana-based memecoin, SOL has seen a resurgence in recent days, attributed to BONK’s phenomenal growth that coincided with a short squeeze happening in the same period. Its price has jumped 63.5%, from $9.97 on January 2 to $16.30 on January 10, 2023.
What is Bonk?
Bonk (BONK) is the first dog-themed memecoin of the Solana blockchain and described as ‘for the people, by the people.’ Created entirely for fun, Bonk has little or no real-world utility. Since its launch, the Bonk team has burned 5 trillion BONK tokens, equivalent to 5% of its total supply, allocated for team development, and has just launched 15,000 non-fungible tokens (NFTs) on Magic Eden, on Tuesday January 10, 2023.

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