According to his transaction history as revealed on Etherscan, Ethereum co-founder Vitalik Buterin received 5,000 ETH in two payments from the same address just before sending 3000 ETH to the DeFi protocol.
DeFi Llama reports that Uniswap is an automated market maker with $3.6 billion in ETH now trapped in a number of dApps and DeFi protocols.
The fact that Buterin later changed his 3,000 ETH into the stablecoin USDC may be a sign that he expects the price of ETH to plummet after the collapse of FTX, the once fifth-largest cryptocurrency exchange in the world.
The USDC stablecoin is tied to the US dollar. Users of decentralized finance who use stablecoins have the opportunity to make money off of their digital assets. They also shield owners from other cryptocurrencies’ volatility.
Using Ethereum to reduce market volatility
On November 14, 2022, on-chain statistics from Santiment showed that while the number of daily active users on Ethereum declined, active ETH deposits grew, suggesting that rumors of a lack of confidence in the cryptocurrency industry were causing traders and investors to hold back.
There was anticipation that the price of ETH, which was trading at $2,086 at the time, might see a negative reversal when Buterin moved 30,000 ETH from his wallet in May. It turned out that he moved the cash into a wallet that was intended for donations to charities.
On November 16, 2021, just after ETH reached an all-time high of $4,891, the Ethereum Foundation sold 20,000 ETH to Kraken. At a similar peak five months prior, they too cashed out 35,000 ETH to Kraken. Famous cryptocurrency trader Edward Morra raised this issue and posed the hypothetical question of whether the Ethereum Foundation was aware of information that others weren’t given the 40% drop in the price of ETH in less than two months.
Volatility will continue as confidence returns
While Bitcoin fell below $16,000 as a result of the FTX controversy, Ether was able to create a support zone between $1,000 and $1200. It’s difficult to assess whether ETH has hit rock bottom. On June 18, 2022, the most recent low was $880.
FTX’s collapse is becoming more and more real, and as a result, many participants in the centralized exchange industry are scrambling to prove their credibility.
Buterin asserted that the FTX collapse had a particularly detrimental effect on the cryptocurrency markets since FTX marketed itself as a trustworthy institution.
