When the founder of the world’s second-largest cryptocurrency starts selling, people notice. Vitalik Buterin, the creator of Ethereum, has sold a combined total of over $18 million in ETH over recent weeks, according to on-chain tracking by Lookonchain. The latest batch, 1,869 ETH worth approximately $3.67 million, was sold between February 21 and 23, 2026. This came on top of an earlier sale of 6,958 ETH worth $14.78 million.
The timing is brutal. Ethereum is down 34% year-to-date, making this its worst start to any year on record. ETH has fallen from roughly $2,800 at the beginning of January to around $1,880 as of February 23. After the first large sale, ETH dropped from $2,360 to $1,825, a 22.7% decline. After the second round of selling, ETH slipped from $1,988 to $1,875, a further 5.7% decline.
So what is Buterin doing, and should Ethereum holders be worried?
The Sales in Detail
On-chain data paints a clear picture of the selling pattern.
First Major Sale: Buterin sold 6,958 ETH for approximately $14.78 million. During and immediately after this sale, ETH fell from $2,360 to $1,825. The 22.7% decline was partially attributable to broader market weakness, but the correlation with Buterin’s selling activity was hard to ignore. Market participants interpreted the sale as a bearish signal from the protocol’s most visible figure.
Second Sale (February 21-23): Buterin sold an additional 1,869 ETH for approximately $3.67 million. ETH fell from $1,988 to $1,875 during this period, a 5.7% decline. While the absolute dollar amount was smaller, the signal was arguably more damaging because it confirmed a pattern rather than appearing as an isolated event.
The total combined sales of roughly $18.45 million represent a meaningful amount of ETH, though it is worth noting that Buterin’s overall holdings remain substantial. The Ethereum co-founder has historically held tens of thousands of ETH, and periodic sales for personal expenses, charitable donations, or other purposes are not unprecedented.
Why Is Buterin Selling?
Buterin has not publicly explained the motivation behind these specific sales. However, several possibilities exist based on historical context and public information.
Charitable Giving. Buterin has a well-documented history of large charitable donations. In 2021, he donated over $1 billion worth of SHIB tokens to India’s COVID relief fund and has funded various Ethereum ecosystem grants, public goods projects, and research initiatives through his personal holdings. Some or all of the recent sales could be funding similar philanthropic activity.
Personal Expenses and Diversification. Even billionaire founders need liquidity for everyday life. Buterin does not draw a traditional salary, and his wealth is overwhelmingly concentrated in ETH. Periodic sales for diversification or personal use are entirely normal.
Funding Ethereum Development. The Ethereum Foundation regularly sells ETH to fund protocol development and operations. While these specific sales appear to come from Buterin’s personal wallet rather than the Foundation, there may be indirect connections to development funding.
No Public Statement. The lack of a public explanation is itself notable. In previous instances of large sales, Buterin or the Ethereum Foundation has typically offered context. The silence this time has amplified market anxiety.
The Broader Ethereum Problem
Buterin’s selling is attracting outsized attention because Ethereum is already in crisis mode. The 34% year-to-date decline is the worst on record, and several structural challenges are weighing on the asset.
ETH ETF Outflows. Ethereum ETFs have experienced significant outflows alongside Bitcoin ETFs. According to CoinShares data, ETH investment products have seen hundreds of millions in redemptions. Unlike Bitcoin, which at least benefits from the “digital gold” narrative during uncertainty, Ethereum lacks a simple, compelling narrative that resonates with traditional investors during bear markets.
Layer 2 Value Leakage. Ethereum’s successful scaling through Layer 2 networks like Arbitrum, Optimism, and Base has paradoxically reduced demand for ETH as gas fees. Transaction activity has moved to cheaper L2s, reducing the fee burn that was supposed to make ETH deflationary after the Merge. Some analysts argue that L2s are extracting value from the base layer rather than adding to it.
Competition from Solana.Solana has emerged as a serious competitor for developer attention and user activity. While Solana has also suffered in the broader downturn (down approximately 40% from recent highs), its narrative as a faster, cheaper alternative to Ethereum has attracted developers who might otherwise have built on the Ethereum mainnet.
Delayed Upgrades. Developers are finalizing the “Hegota” upgrade (slated for late 2026), which introduces FOCIL (Forward Inclusion Lists) for censorship resistance. While technically significant, the upgrade timeline extends well beyond the current market’s attention span, and traders are focused on near-term price action rather than long-term technical improvements.
Historical Context: Founder Selling Is Not Always Bearish
It is worth examining how founder selling has played out in crypto history.
After Buterin donated his SHIB tokens in 2021, Shiba Inu eventually recovered and rallied to new highs. Satoshi Nakamoto has never sold a single Bitcoin, but that has not prevented multiple 80%+ drawdowns in BTC’s history. CZ (Changpeng Zhao) sold significant BNB holdings at various points, yet BNB has continued to be one of the best-performing major crypto assets over time.
The key insight is that founder selling indicates a transfer of tokens from one entity to another. It does not change the underlying protocol’s technology, user base, or long-term prospects. What matters more is whether the selling is accompanied by reduced development activity, declining network usage, or fundamental shifts in competitive positioning.
In Ethereum’s case, development activity remains strong, total value locked across the ecosystem still dwarfs competitors, and the transition to proof-of-stake continues to function as designed. The selling is concerning in the context of a broader downturn, but it does not signal a fundamental failure of the protocol.
What This Means for ETH Traders
The correlation between Buterin’s selling and ETH price drops creates a challenging trading environment. On-chain watchers will be monitoring Buterin’s wallet closely for any additional transfers to exchanges, as further selling could extend the downward pressure.
However, contrarian investors note that extreme fear often marks significant bottoms. The weekly RSI for ETH has reached levels not seen since the depths of the 2022 bear market. Tom Lee of Fundstrat has said he believes Ethereum could eventually reach $9,000, representing a 177% gain from current levels, once macro conditions improve and institutional appetite returns.
For traders looking to position around Ethereum’s volatility,MEXC offers deep liquidity across ETH spot and futures markets with competitive fees.
Disclaimer: This content is for educational and reference purposes only and does not constitute any investment advice. Digital asset investments carry high risk. Please evaluate carefully and assume full responsibility for your own decisions.
