Ethereum co-founder Vitalik Buterin and the ETH Foundation have reportedly sold $30 million in Ethereum as the price of the digital currency edges toward $2,000. Buterin allegedly sent about $400,000 in Ethereum to the US-based Kraken exchange, after which the Ethereum Foundation transferred $29.7 million worth of the cryptocurrency to the same platform. If Ethereum reaches $2,000 per coin, it will mean the assets sent by Buterin and the Ethereum Foundation are worth around $40 million in fiat currency.
This situation mirrors previous instances involving Buterin, in which the co-founder sold off chunks of Ethereum for seemingly inconsequential reasons. For example, Buterin sold 210 ETH for roughly $325,000 in the USDC stablecoin in February 2022. At that time, Ethereum was trading at $1,545 per coin. In March 2023, he moved an additional 200 ETH to Kraken, selling the amount for $1,656 per coin. Subsequent to these sales, Ethereum’s price increased considerably in both instances.
Recently, data aggregator Santiment reported that Ethereum reached an 8-month high in flows to crypto exchanges. The company predicts that this trend may signal an upcoming increase in market volatility, similar to the one that occurred after the collapse of FTX in November 2022 and the Merge in mid-September. According to a subsequent tweet from Santiment, active deposits of Ethereum on exchanges are currently the highest they have been since November 2021, and the currency appears to be on the verge of breaking above $2,000.
Furthermore, a record amount of Ethereum was burned at the end of last week, largely due to the so-called “meme coin season,” with the majority of meme coins running on Ethereum. With high ether fees, this season provides an excellent opportunity to burn the cryptocurrency and reduce the amount of digital assets in circulation.
It is important to note that while Buterin and the Ethereum Foundation may be conservative by selling off their Ethereum, they will likely still make a profit if the price of the digital currency continues to climb. As Ethereum’s market capitalization grows, it is likely that Buterin and others will continue to sell off their holdings, potentially driving the digital currency’s price even higher.
In summary, Ethereum co-founder Vitalik Buterin and the Ethereum Foundation have reportedly sold $30 million in Ethereum as the cryptocurrency approaches a price of $2,000 per coin. With ETH prices reaching an 8-month high, a surge in liquidity, and ongoing meme coin season, the stage appears to be set for Ethereum to surpass that milestone. As such, investors should be aware of the potential for drastic changes in market dynamics and volatility over the coming weeks and months.
