Key insights : 

• Vitalik Buterin has disclosed that 90% of his net worth is held in ETH, signaling strong confidence in Ethereum’s long-term potential.
• The Ethereum Foundation’s recent transfer of 35,000 ETH ($94M) to Kraken has raised transparency concerns within the community.
• Significant ETH sell-offs by large holders have contributed to a nearly 9% price decline, reflecting ongoing market volatility.

Vitalik Buterin, co-founder of Ethereum, recently disclosed that approximately 90% of his net worth is held in ETH. This revelation comes during heightened market volatility and ongoing debates within the Ethereum community about the platform’s role as a store of value (SoV). Buterin’s statement underscores his strong belief in Ethereum’s long-term potential, even as the cryptocurrency faces significant selling pressure from large holders, often called “whales.”

Buterin Reaffirms Faith in Ethereum’s Future

In a recent interaction on X (formerly Twitter), Buterin confirmed that nearly 90% of his wealth is tied to Ethereum. This disclosure was made as the Ethereum community engaged in discussions regarding the cryptocurrency’s role within the decentralized finance (DeFi) ecosystem, particularly its potential as a store of value. 

Some community members have expressed concerns about Ethereum’s future amid these debates, especially in light of recent market downturns. Buterin’s commitment to holding most of his net worth in ETH sends confidence in the platform’s future. 

Despite Ethereum’s challenges, including market volatility and skepticism from some investors, Buterin’s stance suggests that he remains optimistic about the cryptocurrency’s potential to recover and grow in value over time.

Ethereum Foundation’s Transparency Questioned After Large Transfers

The Ethereum Foundation (EF) has come under scrutiny following its recent transfer of 35,000 ETH, worth approximately $94 million, to the Kraken exchange. This move raised concerns among community members about the transparency and potential market impact of such large-scale transactions. The Foundation’s financial management practices have been a point of contention, with some fearing that these activities could negatively affect ETH’s market price.

Aya Miyaguchi, Executive Director of the Ethereum Foundation, addressed these concerns by explaining that the transfer was part of the Foundation’s routine treasury management. She noted that the funds were needed to cover operational expenses, including grants and salaries, often requiring conversion to fiat currency. However, despite these explanations, the transaction has called for greater transparency in the Foundation’s financial activities.

In response, Josh Stark, a member of the Ethereum Foundation, provided a breakdown of the Foundation’s spending, highlighting both internal and external expenses. To address the community’s concerns, the Ethereum Foundation has committed to releasing a comprehensive report on its spending for 2022 and 2023 by the end of the year.

Whale Activity and Market Uncertainty

While  Buterin’s confidence in ETH remains strong, the market has seen significant selling activity from large holders. Recent data shows that several whales have been liquidating their ETH holdings, contributing to a sharp decline in Ethereum’s price. One whale sold 19,000 ETH, worth about $49.17 million, after withdrawing it from staked Ether (stETH), while another exchanged 4,591.8 stETH for 4,589.5 ETH, then deposited 5,145 ETH, worth $13.3 million, to Binance for a potential sale.

This selling pressure has led to a nearly 9% drop in ETH’s price, with the cryptocurrency now trading below key trendlines. As market uncertainty persists, Ethereum’s short-term price trajectory remains unclear, with potential support levels around $2,000 to $2,300.

Despite these challenges, Buterin’s substantial ETH holdings highlight his enduring belief in the platform’s value, even as the market faces ongoing turbulence.