Buterin Lightens ETH Wallet in February as Market Faces Pressure

The Ethereum market situation became even more complicated in February when Vitalik Buterin, co-founder of Ethereum, proceeded to liquidate a significant amount of his personal holdings. The well-known developer’s wallet experienced substantial outflows during the month, with transactions reducing the balance from about 241,000 ETH at the start of the month to 224,000 ETH, according to Arkham Intelligence data.

This reduction of approximately 17,000 ETH, worth around $43 million at the time of the announcement, directly follows a allocation Buterin had disclosed in January. In January, the Ethereum co-founder announced plans to allocate substantial resources toward privacy-preserving technologies, open hardware, and secure software systems, describing the plan as a personal initiative during a period of “moderate austerity” for the Ethereum Foundation.

The amount of sales and flow timeline

Available data shows that the wallet reduction did not occur through a single large transaction but rather through a steady series of movements throughout the month. In the first three days of February, outflows totaling $6.6 million were recorded, while in the last three days, an additional $7 million worth of sales completed the process. This gradual progression aligns with the operational practices chosen.

The role of CoW Protocol in transactions

The decentralized exchange aggregator CoW Protocol was the primary tool used to manage these liquidations. Using this protocol, splitting operations into numerous smaller trades instead of single massive transactions, is a standard industry practice to minimize slippage and limit price impact.

However, this operational strategy also meant that the selling flow was steady and progressive throughout the entire month, exerting continuous pressure on the market rather than being a one-time event. The cumulative effect of these transactions manifested alongside the overall decline in Ethereum’s price.

Staking yields and market pressures

The price of ETH experienced a significant contraction during this period, reaching around $1,900 at the peak of pressure in February. Currently (March 2026), the price hovers around $2,140, with a +3.91% change in the last 24 hours, indicating slight stabilization.

The network situation is further complicated by over 30% of the total ETH supply being locked in staking, but protocol yields have compressed to around 2.8%, making staking less attractive compared to risk-free alternatives in the traditional financial market. This factor has amplified psychological pressure on large holders, with Buterin’s sales adding further media attention.

Impact on institutional holders and outlook

The liquidation has increased difficulties for institutional investors exposed to ETH. Bitmine Immersion Technologies, one of the largest corporate holders, faces significant unrealized losses as ETH has fallen about 60% over six months, well below their average entry prices.

Broader market developments see Bitcoin consolidating above $70,000, maintaining most of recent gains, while altcoins like Solana and Dogecoin have risen about 5%. Mining stocks related to the crypto sector participated in the rally along with traditional stock markets, with the S&P 500 and Nasdaq both up about 1.2%.

Analysts note that the next phase of volatility will depend on the stabilization of global energy prices, which could support a test in the $74,000–$76,000 range for Bitcoin, or on worsening geopolitical factors that might push prices toward mid-$60,000s. In this macroeconomic uncertainty, the future actions of key figures like Buterin will continue to be closely monitored signals by market participants.