News coming from blockchain data has revealed that Vitalik Buterin, famously known as the co-founder of Ethereum, has suffered a loss of $20 Million in the past seven days. According to Arkham Intelligence, the value of the assets held by Buterin went down from $412 million on Oct. 3 to $392 million on Oct 10.
In recent days Ethereum has seen some significant decline in its value. There is some news circulating in the market that may provide a correlation to why Ethereum has seen a price fall and why Buterin suffered a loss of about $20 million.
The Ethereum network has undergone significant upgrades in the previous year, which caused an alteration in the mechanism of how the coin is issued. The altered mechanism caused a reduction in the amount of new Ether tokens issued to the network. A new burn mechanism was introduced to further decrease the supply of ETH. For most of 2023, the number of coins that have been issued is less than the number of coins burned. This has caused a net decrease in the total ETH supply.
In September 2023, there was a change in how new coins are created in the Ethereum network. This happened because the fees for using the network went down since there was less activity. Data from a source that studies Ethereum showed that the total supply of ETH, the cryptocurrency used on the network, went up by 30,064 ETH in the last month. This increase happened because the usual process that burns or reduces the supply of ETH became less active due to reduced network usage.
Combining this activity with the news that Buterin has sent 3999 ETH to exchanges in the past weeks, which amounts to roughly $6.4 million, the sentiment in the market has slightly changed about Ethereum. The 20 million dollars, while sounding colossal, is still not a major blow to Buterin’s crypto portfolio since his portfolio size is still sitting strong at $391 million.
But, the thing to note here is that the Ethereum co-founder’s crypto portfolio comprises entirely of ETH. So if Buterin decides to jump ship and choose another coin as the major contributor towards his crypto holdings, then this would be interpreted as a bearish sign by the market.
According to data from CoinMarketCap, ETH has seen a price reduction of nearly 5.85% in the last seven days at the time of writing.
Lately, the news about Ether has mostly been not-so-good, and that’s why its value has been going down. Several things are causing this, including increased regulatory pressure from the authorities on tokens and crypto exchanges, more Ether being made and put into circulation, important people like Vitalik and the Ethereum Foundation selling their Ether and Ethereum Futures ETF not being in popular demand as many thought it would be.
