Vitalik Buterin Addresses ETH Sales by Ethereum Foundation Amid Rising Holdings

• Vitalik Buterin clarifies that recent ETH sales support Ethereum development, focusing on research, security, and community initiatives.
• Buterin confirms he hasn’t sold Ethereum recently, addressing critics concerned about the impact on ETH’s price stability.
• Two substantial ETH transactions totaling over $762 million were recently transferred to Coinbase, stirring interest within the crypto community.

In a recent post, Ethereum co-founder Vitalik Buterin addressed criticism surrounding Ethereum Foundation’s substantial sales of ETH. Responding to concerned users on X, Buterin stated he has not sold any of his holdings over the past month. Instead, he emphasized that his Ethereum (ETH) balance has increased, putting to rest assumptions that he contributed to the recent sales activity.

Buterin Clears Air on ETH Sales

Buterin’s statement came amid heightened scrutiny of ETH sales linked to both him and the Ethereum Foundation. His post responded directly to calls for him to “stop dumping” Ethereum, which some in the crypto community had attributed to him. However, Buterin clarified that recent ETH sales were solely conducted by the Ethereum Foundation and confirmed his commitment to maintaining a strong position in ETH, dispelling rumors of personal involvement in the sales.

Addressing why the Ethereum Foundation has been actively selling ETH, Buterin explained that these transactions were essential for the continued support of Ethereum’s ecosystem. The funds have been directed toward critical areas, including research and development, security enhancements, and supporting Ethereum’s global community. Among the accomplishments funded by these sales are Ethereum’s shift away from proof-of-work, reducing the ETH supply by 5 million annually, and ensuring that transaction fees remain low.

Buterin also highlighted the impact of the Foundation’s investment in projects like zk-rollup technology, which facilitates secure and private Ethereum transactions. Additionally, he noted that the Foundation’s financial support has enabled the reduction of transaction times, now ensuring faster transaction finality through the implementation of Ethereum Improvement Proposal (EIP) 1559. These upgrades aim to enhance user experience and network efficiency, driven by the Foundation’s proactive funding strategies.

Whale Transfers of ETH to Coinbase Trigger Discussion

Adding to the activity surrounding Ethereum, recent whale transactions have intensified discussions across the crypto sector. On October 25, a blockchain monitoring tool, Whale Alert, revealed two significant transactions to Coinbase. Each transfer involved 149,999 ETH, totaling over $762 million in value. Although the origin of these transactions remains unknown, they have sparked widespread speculation about the intent, with some users hypothesizing liquidity tests, while others expect a potential strategic move involving Coinbase.

Market Response and ETH Price Movement

As a result of recent events, Ethereum’s price saw a brief dip of nearly 5%, reaching $2,433 before partially recovering to its current trading level of $2,465. The fluctuations follow both the Foundation’s ETH sales and the high-value transfers to Coinbase, contributing to ongoing volatility within the market.