3 hours ago
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BEARISH 📉 : Ethereum price drops 10% after Vitalik sells $500K ETH
Key Highlights:
- Ethereum's token, ETH, dropped 7% in 24 hours following Vitalik Buterin's sale of $500,000 worth of ETH.
- Buterin sold 211.84 ETH for 500,000 USDC, transferring it to Kanro, a fund with charitable goals.
- Post-sale, ETH fell nearly 10% within 25 hours, trading at $2,117, reflecting low-liquidity-driven volatility.
- Trading volume decreased by 31%, indicating reduced market activity.
Vitalik Buterin's Perspective on Layer 2 Scaling:
- Buterin questioned the traditional "rollup-centric" vision of Layer 2s (L2s) for scaling Ethereum.
- He suggested L2s should offer a range of solutions and focus on unique features beyond scaling.
- His comments highlighted the slower-than-expected progress of L2s and prompted industry uncertainty.
Market Context:
- The shift in narrative impacts an industry heavily invested in L2 solutions for Ethereum scaling.
- Despite uncertainties, interest remains strong in large-cap cryptocurrencies, including Bitcoin and Ethereum ETFs.