Two large holders of Ethereum, also known as whales, sold 19,090 ETH worth approximately $35.7 million on the decentralized exchange Uniswap on May 7. This move came just hours after Ethereum co-founder Vitalik Buterin and the Ethereum Foundation sold coins worth approximately $30 million on a centralized exchange called Kraken. The first whale converted 9,950 ETH for 18.63 million DAI, while the second whale dumped 9,140 ETH for 17.07 million DAI. DAI is an algorithmic stablecoin that tracks the value of the US dollar, and it is issued on the Ethereum blockchain by MakerDAO, one of the largest decentralized finance protocols.
The sales, coupled with Buterin’s exit from the market, have led to a drop in Ethereum prices, according to CoinMarketCap data. This has raised questions about whether Ethereum will maintain the uptrend seen in the first quarter of 2023. The last time the Ethereum Foundation sold its holdings, ETH experienced an extended bear market. It remains to be seen if the current prices are peaking and if further sellers will push the coin’s value lower in the coming sessions.
The sales of these large holders in the Ethereum market highlight the impact that large trades can have on the cryptocurrency market. It is important to note that large trades by whales are not uncommon and can be seen as a natural part of the market cycle. However, such trades can cause panic among smaller investors, leading to a decline in market sentiment and, in some cases, a price drop. Despite the recent drop in Ethereum prices, the cryptocurrency remains one of the largest and most popular blockchain networks, with a wide range of use cases in decentralized finance, gaming, and other applications.