Yeliz Akmaca 
Ethereum co-founder Vitalik Buterin sold 10,723 ETH over the past three weeks, converting the assets into stablecoins worth approximately $21.7 million. On-chain data confirms that these sales were not random but directly tied to his plan to fund open-source software, hardware, and biotechnology projects. The timing, however, stands out. The transactions occurred during a period when Ethereum’s price was already fragile, directly influencing market psychology.
In crypto markets, sometimes it’s not the charts but the wallets that speak. This was one of those moments.
Sales began on February 2 and accelerated in recent days
According to blockchain analytics platforms Lookonchain and Arkham, Buterin’s sales began around February 2. Since then, the transactions have been executed at an average price of approximately $2,027 per ETH. This detail matters. The sales were not executed all at once but distributed over time.
Activity increased noticeably in recent days. Within just the three-day period leading up to February 24, a total of 3,765 ETH changed hands. This amount was worth roughly $7.08 million. Blockchain tracking platform Onchain Lens confirmed that these transactions were converted into stablecoins.
Technically, these were sales. But context matters. Buterin did not convert these assets for personal spending, but rather to generate liquidity for technology funding.
Part of a $45 million open-source funding initiative
On January 30, Buterin announced that he had withdrawn approximately 16,384 ETH into his personal control. At the time, the assets were worth around $45 million. The goal was clear: to accelerate the development of open-source, secure, and verifiable technologies.
The planned funding spans a wide range of sectors.
These include financial infrastructure, secure communication systems, decentralized governance tools, operating system components, secure hardware solutions, and biotechnology projects.
Buterin described the move as a personal contribution aligned with the Ethereum Foundation’s long-term sustainability strategy. As such, the transactions represent a redistribution of capital within the ecosystem rather than an exit from it.
In other words, this was not an abandonment. It was more of a repositioning.
ETH was already under price pressure
To understand the impact of the sales, market conditions must be considered. Ethereum was already in a weak phase.
Recent market data shows Ethereum has lost approximately 38% of its value over the past 30 days. The asset is currently trading around $1,825. This places it roughly 63% below its previous all-time high of about $5,000.
On-chain data also shows that some of the sales coincided with short-term price declines. For example, following the sale of 6,958 ETH, the price dropped by 22.7%. Similarly, after another sale of 1,869 ETH, the price declined by 5.7%.
At first glance, this creates the impression of direct impact. However, market dynamics are rarely one-dimensional. During the same period, broader risk-off sentiment, ETF outflows, and overall crypto market weakness also contributed to the downward pressure.
Community reaction is divided
Market participants on X expressed mixed reactions to the continued selling. Some criticized the timing, arguing that selling during an already weak market further damaged investor confidence.
Some users directly called for the selling to stop, while others described the situation as embarrassing. These reactions highlight the continued psychological influence that founder wallet activity has on market perception.
However, others took a different view. Supporters pointed out that Buterin had publicly announced his funding plans in advance and that the transactions were part of a planned initiative rather than an unexpected exit. From this perspective, the sales represent a liquidity strategy for long-term technological investment.
Founder sales in crypto markets often create not only supply pressure but also perception-driven volatility. Because blockchain transparency allows investors to track wallet activity in real time, reactions can be immediate.
What does this mean in the bigger picture?
Founder sales are often interpreted as bearish signals, especially during weak market conditions.
Buterin’s conversion of ETH into stablecoins reflects a need to generate liquidity. However, the purpose of this liquidity is not speculative exit, but direct funding for technology development.
In the short term, such sales can create price pressure. This is not unusual. But from a long-term perspective, the use of these funds to strengthen the Ethereum ecosystem may present a different outcome.
And in crypto markets, the true impact of moves like this is often not priced in immediately—but later.
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