- Ethereum co-founder Vitalik Buterin has moved 600 ETH worth over $1 million to Coinbase.
- The purpose of these transactions is not known but it comes at a time when Ether (ETH) has been consistently falling.
- Crypto analysts are keenly tracking Buterin’s and other whales account and these movements are likely to shape market dynamics in the near future.
Ethereum co-founder Vitalik Buterin recently made a sizable payment to the Coinbase cryptocurrency exchange even as the ether-to-bitcoin ratio dropped to its lowest in 14 months.
According to data from the Ethereum blockchain scanning website Etherscan, Buterin deposited 400 ETH, equivalent to approximately $632,000, to Coinbase on Monday
Selling Pressure on Ethereum is likely to increase
The purpose of these transactions is not yet known. Transfers to exchanges are typically seen as prospective sell-offs. Buterin’s transaction may increase selling pressure on Ethereum.
The timing of this action by Buterin coincides with a discernible decrease in the value of cryptocurrencies, with Ether, the second-largest cryptocurrency by market capitalization, down by 3% during the previous week.
In recent weeks, Ether (ETH) has consistently fallen, dropping below the $1,600 level. It decreased by 3.2% over the last seven days, extending a downward trend of 4.3% over the previous 30 days.
According to Coinshares, Ethereum experienced substantial outflow with $108 million sold off by institutional investors in 2023.
The move, which included today’s transaction, continued a recent trend of transactions during the previous seven days in which Buterin sent more than 1,000 ETH to exchanges, unidentified addresses, and a Gnosis Safe Proxy wallet.
It’s interesting to note that Buterin’s ETH holdings have been used in other recent transactions than this payment to Coinbase. The Buterin account sent 300 ETH to Kraken, another well-known Bitcoin exchange, in the previous seven days. In addition, almost $80,000 worth of stablecoin USDC was created from 200 ETH from Buterin’s wallet.
Buterin carried out ETH transactions totalling $1.4 million in value during the previous week.
Individuals can trade, sell, or hold their digital assets inside the platform’s ecosystem by depositing bitcoin to exchanges. Depositing assets to an exchange usually signals intention to sell, while withdrawals suggest accumulation
There is still some debate over his aims and tactics because it’s unknown why he made the trade.
At the time of writing, ETH was down 0.80% in price over the previous 24 hours, trading at $1,580.83, according to data from CoinMarketCap.
According to Arkham’s intelligence data, Buterin still holds a substantial amount of ETH, with nearly 250,000 Ether units worth $390 million in his address.