At Ethereum, the largest altcoin project, the team’s sales are worrying the cryptocurrency markets. Meanwhile, Ethereum supporters are confident that prices will surpass the $2,000 mark, but recent moves by ETH founder Vitalik Buterin and the Ethereum Foundation, the team that manages the smart contract platform, stand out. On May 5, LookOnChain noticed that Vitalik.eth, the domain associated with Ethereum co-founder Vitalik Buterin, had transferred 200 ETH, valued at around $400,000 at current valuation, to Kraken, a cryptocurrency exchange. Here are the details…
Selling frenzy for the leading altcoin
The Ethereum Foundation, a nonprofit dedicated to the development of the Ethereum Blockchain, has made headlines in recent years with the large-scale sale of the cryptocurrency. In the latest news, the Foundation has reportedly sold 15,000 ETH, adding it to a long list of notable sales. According to reports, the Ethereum Foundation sold 20,000 ETH in 2021 at a high point in the market. However, in 2020, the Foundation sold exactly 100,600 ETH for a price of $657. This record-breaking sale took place at a time of high volatility in the cryptocurrency market and raised eyebrows among investors and enthusiasts.
More recently, on May 5, 2023, the Ethereum Foundation made another major Ethereum transfer to a major exchange. According to analytics platform @lookonchain, Ethereum co-founder Vitalik Buterin sent about half a million worth of Ethereum to the same exchange before the Foundation transferred almost $30 million worth of Ethereum. While the exact reasons for the large-scale sale of the foundation remain unclear, it is possible that the organization is using the funds raised to support ongoing development efforts, fund future projects, or support charitable causes.
Despite this, some members of the cryptocurrency community have expressed concern about the impact of the sell-off on the Ethereum market, with some fearing that the Foundation’s actions could lead to a drop in Ethereum’s value. The sale of large volumes of cryptocurrencies by major players has become a frequent occurrence in the cryptocurrency market in recent years. However, the size and frequency of the Ethereum Foundation’s sales attracted considerable attention. While the organization has not made any official statements about its latest transfer, it will be interesting to see how the market will react to this latest move from the Ethereum Foundation.
What is the latest situation in Ethereum price?
Coin holders, including ETH holders, often send tokens from time to time. Still, any transfer to a centralized exchange is interpreted as bearish. Vitalik Buterin may need funds to cover operating costs or even invest in projects. As we mentioned above, it is not known why he is currently selling. In the past, Buterin has sold ETH in bulk without causing a significant price drop.
Despite this development, some platforms, including Santiment, pointed out that ETH is diverging from Bitcoin. Moreover, they believe that the altcoin may soon recover and reach over $2,000. According to data from Santiment, there has been a significant increase in the amount of Ethereum moved to crypto exchanges over the past few months. Despite these concerns, there are also positive signs based on on-chain activities.
https://twitter.com/santimentfeed/status/1654355262638288897
At the end of this week, a record amount of ETH has been burned thanks to the meme coin craze and especially PEPE. The vast majority of meme coins run on Ethereum and are actively transported with higher gas fees. It also offers a great opportunity to burn ETH and reduce the circulating supply. In addition, Ethereum is being adopted more and more by large companies and institutions. This, in turn, increases the demand for cryptocurrency. Last week, the European Investment Bank (EIB) announced that it has issued its first digital bond on the Ethereum Blockchain. Thus, it marked an important milestone for the cryptocurrency.
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