Ethereum co-founder Vitalik Buterin has once again made headlines with his latest Ethereum (ETH) transactions. Data from Lookonchain revealed that Buterin’s wallet has been selling significant amounts of ETH since late August, raising concerns among the Ethereum community.
The wallet address associated with Buterin has sold a total of 950 ETH, valued at approximately $2.28 million, at an average price of $2,396 per token. The most recent sale, involving 190 ETH, was worth around $441,971 in USDC. These transactions have added to the growing pressure on ETH prices, which have been struggling to maintain momentum.
Increased Selling Pressure on ETH
The recent ETH sell-offs, coupled with the general market sentiment, have contributed to increased selling pressure on the cryptocurrency. On September 11, the amount of ETH on exchanges reached 21.15 million, indicating a growing willingness to sell. Historically, high ETH trading volumes on exchanges have often been a precursor to price declines.
Buterin Announces Stricter Rules for Ethereum Layer 2 Projects
While the ETH sell-off has dominated discussions, Buterin also addressed the development of Ethereum’s Layer 2 (L2) solutions. He announced that starting in 2025, there will be stricter rules for public L2 projects. Only projects that have reached “Stage 1” or higher will be mentioned, regardless of any direct or indirect participation or investment. This move aims to enhance transparency and security within the Ethereum ecosystem.
Buterin noted that ZK rollups are making significant progress, with many teams expected to reach Stage 1 by the end of 2024. Stage 1 requires at least 75% of the council to vote to cancel the proof system, while at least 26% of council members must be independent of the roll-up team. These milestones are crucial for the development of Ethereum, as they address both security and scalability concerns.
Debate Over Layer 2 Network Security
The recent discussions around Layer 2 networks have also highlighted concerns about their security. Justin Bons of Cyber Capital raised concerns about the centralized nature of some Layer 2 networks, suggesting that user funds could be at risk. Buterin responded by emphasizing the importance of decentralization in ensuring the security of Layer 2 solutions.
Also Read: Vitalik Buterin Shuns Layer 2s Amid 200% TVL Surge Ethereum Revenues Drop 80%
Despite these concerns, Layer 2 networks like Arbitrum, Optimism, and zkSync have gained significant traction. They currently process over 80% of Ethereum’s transactions, providing scalability and efficiency. However, the increased activity and advancements in Layer 2 solutions have not yet had a substantial impact on ETH prices.
Vitalik Buterin’s ETH sell-offs and the discussions around Layer 2 development have created a mixed landscape for Ethereum. While the sell-offs have added to the pressure on ETH prices, the advancements in Layer 2 solutions offer potential for future growth. The long-term impact of these developments on Ethereum’s price and market position remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
