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Vitalik Buterin Offloads Nearly $6.6M in ETH Amid Price Decline

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Vitalik Buterin Offloads Nearly $6.6M in ETH Amid Price Decline

Ethereum co-founder Vitalik Buterin has sold a significant amount of his personal ETH holdings over the past several days.

Summary

  • Ethereum co-founder Vitalik Buterin has sold nearly 3,000 ETH worth about $6.6 million, according to on-chain data shared by Lookonchain, with sales reported to be ongoing.
  • The transactions follow Buterin’s disclosure that he has set aside 16,384 ETH to fund long-term open-source and infrastructure projects, easing concerns of an abrupt sell-off.

According to blockchain analytics shared by Lookonchain, Vitalik has offloaded 2,961.5 Ethereum (ETH), worth approximately $6.6 million, at an average price of around $2,228 per ETH. The selling is reported to be ongoing.

Lookonchain’s alert on X highlighted the on-chain movements from an address publicly associated with Vitalik, noting multiple smaller swap transactions likely routed through decentralized protocols to limit market impact.

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This activity has coincided with increased market volatility. Ethereum was trading at $2,075 at press time, down 7.5% over the past 24 hours. ETH price has recently traded lower, and sales by major holders can influence short-term sentiment among traders.

Sales by founders and early contributors tend to draw heightened scrutiny in crypto markets, as they are often viewed as confidence signals rather than routine liquidity events. While the amount sold represents a small fraction of Ethereum’s total supply, on-chain transparency means such moves are immediately visible and widely discussed.

Vitalik Buterin’s ETH sales linked to planned long-term funding

The recent ETH sales are not an isolated or abrupt decision. Last week, Buterin publicly announced that he had set aside 16,384 ETH from his personal holdings, roughly $44–$45 million at current prices, to support long-term initiatives.

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In a detailed post on X, Buterin said the allocation is part of his broader vision to fund open-source, secure, and verifiable technology, including infrastructure and public-goods research. The disclosure has led some market participants to view the recent sales as part of a planned funding strategy rather than a sudden sell-off.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class