The news now has been reported around the internet that Vitalik Buterin, Ethereum co-founder dumped around 3,000 Ethereum. The news is being supported by revealing his transaction history as seen on Etherscan. The transaction history also exposes that he received 5,000 ETH in two payments from the same address soon before transferring 3000 ETH to the DeFi protocol.
DeFi Llama reports that Uniswap is an automated market maker with $3.6 billion in ETH now trapped in a number of decentralized applications and DeFi protocols. The fact that Buterin later changed his 3,000 ETH into the stablecoin USDC may be a sign that he expects the price of ETH to plummet after the collapse of FTX. Moreover, FTX was the once fifth-largest cryptocurrency exchange in the world.
The USDC stablecoin is pegged to the dollar. It means the value of USDC stablecoin would be quite equivalent to US Dollar. Having stablecoins in the portfolios have several benefits. The most advantageous point about having stablecoin is individuals also shield owners from other cryptocurrencies’ volatility. Moreover, the Users of decentralized finance who use stablecoins have the opportunity to make money off of their digital assets.
Ethereum Strategy on Market Volatility
The impact of FTX’ Bankruptcy, once the fifth largest crypto exchange, has been spread all round the crypto market. On November 14, 2022, Santiment’s on-chain analytics revealed some disturbing facts for the crypto users. According to it, although active ETH deposits have been increased, the number of daily active Ethereum users decreased. The analysis emphasizes that lack of confidence in the cryptocurrency industry were keeping traders and investors on the sidelines.
There was anticipation that the price of ETH, which was trading at $2,086 at the time, might see a negative reversal when Buterin moved 30,000 ETH from his wallet in May. However, the facts turned out that Buterin moved the cash into a wallet that was intended for donations to charities.
On November 16, 2021, just after ETH reached an all-time high of $4,891, the Ethereum Foundation sold 20,000 ETH to Kraken. At a similar peak five months prior, they too cashed out 35,000 ETH to Kraken. Famous cryptocurrency trader Edward Morra raised this issue and posed the hypothetical question of whether the Ethereum Foundation was privy to information that others weren’t given the 40% drop in price of ETH in less than two months.
Volatility will continue as confidence returns
Cryptos now have experienced the impact of FTX’s Banruptcy and insolvency in this week. The price of most digital currencies is declining over few days. While Ether was able to create a support range between $1,000 and $1200, Bitcoin was able to go below $16,000 as a result of the FTX controversy. Whether ETH’s bottom has been achieved is difficult to determine. This has really made hard for the crypto market to revive from what has happened in the last week. The last low point occurred on June 18, 2022, at $880.
FTX’s collapse is becoming more and more real, and as a result, many participants in the centralized exchange industry are scrambling to prove their credibility. In fact, Buterin asserted that the FTX collapse had a particularly detrimental effect on the cryptocurrency markets since FTX marketed itself as a trustworthy institution.
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