Blockchain detective account on the X app OnchainDataNerd has reportedly noticed another portion of ETH sent by Ethereum co-creator Vitalik Buterin to the largest exchange in the US – Coinbase.
This is not the first time Buterin has sold ETH this year. He sent ETH not only to Coinbase but also to Bitstamp platforms. Previously, according to reports, he transferred a significant portion of this altcoin to Coinbase at the end of September this year.
In August of this year, Buterin deposited about 600 ETH (worth about $1 million) to Coinbase. On October 7, he transferred 1,000 ETH to the Bitstamp exchange and sold it for about $1.64 million. Overall, Buterin’s wallet transferred 4,400 ETH to that centralized exchange in September and October, according to data shared by “Smart Money” tracker Lookonchain. This amount of ETH is equivalent to approximately $7.23 million.
Does not affect ETH price
Today’s ETH transaction with Buterin’s Coinbase and the possible subsequent sale did not have any discernible impact on the price of the second-largest cryptocurrency by capitalization.
Since October 24, after a 48-hour peak of 12.87%, pushing ETH to $1,848, the price has lost a total of 2.3% but is still trading above the $1,800 price level.
At the end of October, the aforementioned source reported several new wallets making notable ETH purchases on exchanges as they withdrew 47,760 ETH worth $82.97 million into cold wallets at the time. .
ETH Price Prediction $8,000
According to a recent report, global bank Standard Chartered announced that it expects the price of ETH to skyrocket to $8,000 within the next few years.
The basis for this bold prediction is the leading role of the Ethereum blockchain in the world of smart contracts, gaming, DeFi and traditional asset tokenization.
Additionally, several major fund managers recently applied to the US securities regulator for permission to launch a spot Ethereum ETF. Many market participants expect the price of ETH could skyrocket if approved. So far, the SEC is reviewing about a dozen spot Bitcoin ETF filings, but Galaxy Digital head Mike Novogratz expects the first BTC ETF to be approved in 2023.
According to Ethereum co-founder Vitalik Buterin in a recent blog post , the Ethereum layer 2 ecosystem continues to expand and diversify. As new scaling solutions emerge, Buterin predicts increasing heterogeneity in layer 2 designs based on specific cost and security trade-offs.
Rollup, validium, sidechain, and other layer 2 architectures provide different balances between decentralization, security, and scalability. Financial applications require the highest security guarantees, while social networks and games can accept some downtime in exchange for lower fees.
Buterin noted projects transitioning from layer 1 standalone to layer 2 Ethereum will likely take a gradual, multi-phase approach. Moving all operations to rollup at once will impact usability, but waiting too long risks missing the opportunity. Niche centralized and layer 1 projects also want enough decentralization to ensure additional security without sacrificing high throughput.
Validium relies on zero-knowledge (ZK) proofs to ensure correct computation without storing all data directly on Ethereum. This saves costs compared to rollups, but validators face data availability risks if the operator does not make the data available. Rollup ensures users can always withdraw funds from the Ethereum mainnet.
Disconnected systems like sidechains have even lower overhead but require trust in a small group of validators. Hybrid approaches are also gradually emerging, such as validium which allows users to pay for Ethereum data availability periodically.
Buterin emphasized the importance of external chains maintaining close links to Ethereum. This reduces the security risks of bridging Ethereum native assets and allows for shared account abstraction between chains.
Validating bridges can provide validium-level security, proving correct state transitions. However, handling extreme cases like 51% attacks requires social commitment to coordinate upgrades. Reading Ethereum data and reverting when Ethereum reverts is also important. Chains that only read the last blocks of Ethereum avoid some of the complexity but will give up functionality during low precision.
Overall, Buterin sees value in multiple layer 2 designs. Applications will continue to tailor solutions to their specific security, scalability, and decentralization needs. However, staying connected to Ethereum offers benefits regardless of architecture. He believes that, as technology develops, projects can strengthen their relationship with Ethereum in stages.
