Ethereum co-founder Vitalik Buterin recently disclosed the rationale behind his ongoing ETH sell-off in response to growing concerns among the community. Recent reports indicated that Buterin sold a total of $190 ETH for $441,971 in USDC stablecoins.
In a bid to address doubts surrounding the ETH sell-off, the wallet associated with Vitalik Buterin, vitalik.eth, has been actively selling Ether, leading to apprehensions regarding the current liquidations. This wallet has received 3,800 Ether valued at approximately $10 million from Buterin, with a sale of 950 Ethereum (worth $2.28 million) at an average price of $2,396. Alongside Buterin, the Ethereum Foundation has also been selling its ETH holdings.
Recent on-chain activity suggests that the vitalik.eth address transferred USDC proceeds from ETH liquidation to the Aave platform. According to the latest on-chain data, Buterin moved a sum of 2,851 ETH, equivalent to $6.73 million, to Aave.
The sale of additional ETH by the Metalpha group has caused concerns of a potential dip in the Ethereum price to below $2,000.
Vitalik Buterin clarified his recent ETH sales amidst discussions about implementing stricter L2 protocols. Responding to inquiries from followers on the reasons for the large-scale ETH transactions, Buterin mentioned that the latest sale was triggered by an automated cowswap TWAP order established on Aug 29.
Looking ahead, Buterin emphasized a stricter approach to mentioning Layer 2 (L2) solutions, indicating that only projects reaching “stage 1” or higher in development will be acknowledged publicly from 2025 onwards. He highlighted the importance of security measures and the progress of Zero-Knowledge (ZK) rollup teams towards achieving Stage 1 by year-end.
Expressing optimism about the advancements in L2 technology, Buterin stressed the significance of maintaining security measures and gradual system improvements. He underscored the necessity of stringent criteria for attaining Stage 1 milestones, emphasizing the importance of council thresholds and independent oversight.
Furthermore, Buterin expressed confidence in the transition from multisig governance to cryptographic trust, citing a track record of successful multisig operations under his purview for years without any failures.
