Vitalik Buterin Offloads $6.6M ETH as Ethereum Dips Sharply

Highlights:

• Vitalik Buterin sold 2,961 Ether worth $6.6 million over three days.
• He allocated 16,384 Ether to support privacy, open hardware, and secure software.
• Ethereum dropped nearly 7% in 24 hours, while Bitcoin also lost 9% value.

Ethereum co-founder Vitalik Buterin has sold 2,961 Ether worth $6.6 million over three days. He sold the coins at an average price of $2,228 each, according to blockchain tracker Lookonchain. Arkham Intelligence reported that the sales went through CoW Protocol. Rather than one large trade, Buterin used several smaller swaps to reduce market impact.

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vitalik.eth(@VitalikButerin) is dumping $ETH fast!

Over the past 3 days, Vitalik has sold 2,961.5 $ETH($6.6M) at an average price of $2,228 — and the selling is still ongoing.https://t.co/Q9G1lEsdiP pic.twitter.com/C1vBn5UimJ

— Lookonchain (@lookonchain) February 5, 2026

Buterin Invests Millions of ETH in Ethereum Projects

Despite selling some Ether, Buterin is investing heavily in long-term projects. Last week, he announced he allocated 16,384 Ether, worth about $45 million, to support privacy-focused technologies, open hardware, and secure software. He said the funds would be distributed gradually as the Ethereum Foundation enters a period of “mild austerity.”

In these five years, the Ethereum Foundation is entering a period of mild austerity, in order to be able to simultaneously meet two goals:

1. Deliver on an aggressive roadmap that ensures Ethereum's status as a performant and scalable world computer that does not compromise on…

— vitalik.eth (@VitalikButerin) January 30, 2026

Buterin also highlighted that he is personally taking on tasks usually managed by the foundation. His goal is to build a secure and verifiable technology stack covering both software and hardware. He added, “Specifically, we are seeking the existence of an open-source, secure and verifiable full stack of software and hardware that can protect both our personal lives and our public environments.”

The Ethereum Foundation has, in the past, faced criticism for selling Ether to fund operations. In response, it has explored alternative strategies such as staking and decentralized finance-based approaches. Buterin’s personal commitment to infrastructure development highlights his effort to balance financial management with technical progress. Data from Arkham shows Buterin still owns 235,268 ETH worth about $549.2 million, with his total portfolio over $569 million.

Crypto Market Faces Sharp Declines and Widespread Liquidations

Buterin’s sales happen amid growing caution around large holders. Ethereum, the largest altcoin by market cap, trades near $2,061 after falling 8% in 24 hours. Its price has moved between $2,048 and $2,242 during this period and is down 30% over the past week. Bitcoin is also lower, trading at $69,256, a 9% drop in the last 24 hours.

The total crypto market value fell to $2.37 trillion, a 7.91% drop in one day. At the time of reporting, the Crypto Fear & Greed Index stood at 11, indicating extreme fear in the crypto market. The decline has been building for weeks, as leveraged Ether holders liquidate assets to cover loans, adding to the downward trend.

Data from CoinGlass shows that more than $1 billion in leveraged crypto positions were liquidated, mostly from long trades. Bitcoin saw $531 million in liquidations, with $470 million from longs and $61 million from shorts. Ethereum had $254 million liquidated, $185 million from longs and $69 million from shorts.

Bitwise chief investment officer Matt Hougan called the situation a “full-blown crypto winter” on X, noting it has lasted since last January. He added, “Chances are, we’re closer to the end than the beginning.” Sales by founders and early contributors get extra attention in crypto markets. Even small amounts are visible on-chain and widely talked about.

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