Vitalik's $23 Million February Sell-Off, Explained
Ethereum co-founder Vitalik Buterin has sold 11,422 ETH worth approximately $23.33 million since the beginning of February 2026, as of February 25, 2026, according to on-chain data tracked by Lookonchain and reported by Cointelegraph. The sales are being executed through his Kanro entity, which he publicly disclosed on January 30 would liquidate a total of 16,384 ETH to fund what he described as a "full stack, open-source, secure and verifiable" software and hardware initiative.
That means roughly 5,000 ETH remain in the pipeline.
The timing has drawn scrutiny. ETH has fallen 38% over the past 30 days, hitting a 20-day low near $1,844 and trading 63% below its all-time high of approximately $5,000, reached in August 2025. Prediction markets at the time of writing show a nearly 75% probability that ETH reaches $1,500 before it touches $3,000 again.
The Kanro Playbook: 16,384 ETH for Ecosystem Infrastructure
The January 30 announcement laid out the scope. Buterin committed 16,384 ETH, then valued at roughly $45 million, to be drawn down over multiple years across sectors including finance, communications, governance, operating systems, secure hardware, and biotechnology. He framed the effort as his "own austerity quota," referencing the Ethereum Foundation's broader push toward fiscal discipline.
On-chain records show the cadence: 10,723 ETH for $21.7 million by February 23, with the most recent burst of 3,765 ETH ($7.08 million) occurring across just 2.5 days. Some of the ETH was withdrawn from Aave before being sold. The average realized price across the month's sales sits at approximately $2,027 per ETH, well above the current spot price, meaning later tranches are executing at progressively worse rates.
Buterin still holds over 224,000 ETH valued at roughly $429 million, making the 16,384 ETH commitment less than 7.3% of his known holdings. That context matters: this is not a liquidation event. It is a structured drawdown that happens to coincide with one of Ethereum's worst monthly performances since the FTX-era capitulation.
The Foundation Stakes While the Founder Sells
The optics are unusual. On February 24, the Ethereum Foundation deposited 2,016 ETH into solo staking as the first tranche of a planned 70,000 ETH staking commitment. The Foundation described the move as a shift toward an endowment model, generating "native, ETH-denominated yield to help fund its stewardship." At current staking rates of 2.8-3.0%, the full 70,000 ETH deployment would produce roughly 2,000 ETH per year.
So on one hand, the Foundation is locking ETH into validators to signal long-term conviction. On the other, the protocol's most visible individual is converting ETH to fiat at a pace of several thousand tokens per week.
The Foundation has also stated it aims to cut annual spending from 15% to 5% of its treasury by 2030, suggesting the staking yield is meant to eventually replace the practice of selling ETH from reserves to cover operating costs.
Both moves are internally consistent: the Foundation wants to stop selling by generating yield, while Buterin is funding external projects that fall outside the Foundation's mandate. But for a market already in fear mode, the headline "Vitalik sells" drowns out the nuance.
$3 Billion in ETH ETF Outflows Compound the Pressure
Buterin's sales are hitting a market that was already bleeding. U.S. spot ETH ETFs have posted roughly $3 billion in net outflows over the past four months, according to market data cited in recent reporting. The current staking base sits at approximately 37 million ETH, around 30% of total supply, but that has not been enough to absorb the persistent sell-side pressure.
The sell-off has also triggered notable on-chain divergences. While retail and mid-tier holders have been panic-selling, blockchain analytics show accumulation by "sophisticated investors" moving ETH into new large wallets. ShapeShift founder Erik Voorhees and a whale associated with Matrixport have been identified among the buyers absorbing Buterin's supply.
Binance inflows reached multi-month highs, a signal typically associated with investors positioning to sell or hedge. The net effect: thin liquidity meeting persistent supply, which amplifies downside moves.
What ETH Holders and Card Users Should Watch
Buterin's 11,422 ETH represents roughly 0.1% of Ethereum's daily trading volume. In isolation, the market impact is negligible. But markets run on narrative, and the psychological weight of the protocol's creator selling into a 38% drawdown creates a feedback loop.
For crypto card users who hold ETH balances or earn rewards denominated in ETH, the practical impact is straightforward: the purchasing power of those balances has declined by more than a third in 30 days. Anyone using an Ethereum-linked crypto card to spend from ETH holdings is converting at significantly worse rates than they were in January. Cards that offer staking rewards on ETH are still generating yield, but the yield is denominated in an asset that is losing value faster than it can accrue.
The remaining roughly 5,000 ETH in Buterin's liquidation queue will continue to create periodic headline pressure. If he maintains the current pace, the full 16,384 ETH commitment will be exhausted by mid-March.
The Divergence Between Ethereum the Protocol and ETH the Asset
This episode crystallizes a tension that has been building throughout 2026. Ethereum the protocol is arguably healthier than ever: the Foundation is staking its treasury, gas consumption remains strong, and the developer ecosystem continues to build. But ETH the asset has underperformed Bitcoin, Solana, and even several smaller L1s on a year-to-date basis.
Buterin himself addressed the disconnect indirectly in his January 30 announcement, noting that the funded projects span far beyond Ethereum itself, covering operating systems, biotechnology, and communications infrastructure. The message is clear: he views his role as funding public goods for the internet broadly, not propping up ETH's price.
That distinction is cold comfort for holders watching a 63% drawdown from all-time highs. Community reactions have been predictably split. Critics argue Buterin "keeps turbo dumping his own project" during its weakest stretch in years. Defenders counter that the sales were pre-announced, structured, and directed toward philanthropic ends that the market should applaud rather than punish.
The truth sits somewhere in the middle. The sales are legitimate and well-documented. The timing is genuinely bad. And the market does not care about intentions, only flows.
FAQ
How much ETH has Vitalik Buterin sold in February 2026? As of February 25, 2026, Buterin has sold 11,422 ETH worth approximately $23.33 million through his Kanro entity. The total planned liquidation is 16,384 ETH.
Why is Vitalik selling ETH? He announced on January 30 that the proceeds would fund a "full stack, open-source, secure and verifiable" initiative spanning finance, communications, governance, operating systems, secure hardware, and biotechnology.
Does Vitalik still hold a significant amount of ETH? Yes. He holds over 224,000 ETH valued at roughly $429 million at current prices. The 16,384 ETH commitment represents less than 7.3% of his known holdings.
Is the Ethereum Foundation also selling ETH? No. The Foundation is moving in the opposite direction, staking 70,000 ETH to generate yield and reduce its reliance on treasury sales over time. It deposited the first 2,016 ETH into solo staking on February 24.
What is the current ETH price? ETH was trading near $1,844 as of February 25, 2026, down 38% over 30 days and 63% below its all-time high near $5,000.
Overview
Vitalik Buterin has sold 11,422 ETH ($23.33 million) in February 2026 through his Kanro entity, with roughly 5,000 ETH still queued for liquidation as part of a pre-announced 16,384 ETH commitment to fund open-source ecosystem projects. The sales are hitting amid a brutal 38% monthly decline in ETH's price, $3 billion in ETH ETF outflows over four months, and prediction markets pricing a 75% chance that ETH reaches $1,500 before $3,000. Meanwhile, the Ethereum Foundation began staking 70,000 ETH from its treasury, creating a visual paradox: the founder sells while the institution stakes. Buterin still holds 224,000 ETH and the sales represent structured philanthropy rather than a loss of conviction, but in a fear-driven market, the optics have amplified selling pressure beyond the actual volume impact.
Recommended Reading
- The Ethereum Foundation Finally Stakes Its Treasury, Starting With 2,016 ETH and a Plan to Deploy 70,000
- Bitcoin ETFs Shed $3.8 Billion in Five Weeks as IBIT Drives the Longest Outflow Streak Since the Pre-Crash February 2025 Bleed
- BitMine Immersion Spent $16.4 Billion on Ethereum and Is Now Sitting on $8 Billion in Unrealized Losses While Still Buying
