Key Points
- An Ethereum whale has sold $47 million worth of Ether, causing market uncertainty.
- Ethereum co-founder Vitalik Buterin also recently offloaded 1,300 ETH.
The Ethereum market is facing renewed uncertainty due to a significant price drop in Ether. This situation is exacerbated by a major Ethereum whale, who was an early participant in the 2014 Ethereum Initial Coin Offering (ICO), unloading a substantial amount of ETH.
Ethereum Whale’s Massive Sell-off
Onchain analytics platform Lookonchain reported that this whale sold 19,000 ETH, worth around $47.5 million, over two days. This recent sell-off adds to the 12,000 ETH, valued at $31.6 million, that the entity sent to the Kraken exchange in late September.
The whale initially acquired 150,000 ETH during Ethereum’s ICO. The value of its holdings has grown from $46,500 to almost $400 million today. If ETH had reached its all-time high of $4,891, last recorded in November 2021, the holdings would have been worth around $750 million.
Adding to the market’s unease is Ethereum co-founder Vitalik Buterin’s recent actions. He offloaded 1,300 ETH within a span of 12 days, sending it to Paxos in late September.
Ether’s Market Performance
The timing of this sell-off coincides with an ongoing slump in Ether’s price. The asset dropped nearly 10% in the first few days of October. As of October 1, the second-largest cryptocurrency was trading around $2,650. However, by October 3, it had fallen to a low of $2,365, marking a 4.6% decline in the last 24 hours. This drop has outpaced the broader crypto market’s decline of 2.6%.
The ETH/BTC trading pair has also suffered, falling to a ratio of 0.039, levels not seen since April 2021. This has further fueled concerns over Ethereum’s underperformance this year.
The recent price action has amplified the ongoing Fear, Uncertainty, and Doubt (FUD) surrounding Ethereum. Social media platforms recorded a sudden spike in debates among Ether critics and supporters.
Last week, Cardano founder Charles Hoskinson, an early co-founder of the Ethereum blockchain, remarked that Ethereum largely depends on its co-founder Vitalik Buterin. He raised concerns about the network’s future development if Buterin were no longer involved.
Optimistic Outlook
Despite the swirling FUD, Ethereum proponents remain optimistic about the network’s long-term prospects. Ethereum educator Anthony Sassano dismissed the negativity, stating that “the FUD is never-ending, and most people in this industry don’t actually care about the truth”.
Former Sushi CTO Joseph Delong expressed confidence in Ethereum’s future. He noted that upcoming upgrades designed to enhance account abstraction and authentication could onboard the next billion users.
Notably, Ethereum has produced nine chains with a gross profit of more than $140 million over the past year. According to data from DeFiLlama, the Ethereum Network currently holds a total value locked (TVL) of $45.32 billion, having doubled in value over the past year.
