- DOG price plunged after the swap, triggering wild panic selling, draining liquidity pools and stoking community governance concerns.
- Ethereum trading volume spiked as bots and traders reacted to the swap, widening bid-ask spreads on major DEXs.
Ethereum co-founder Vitalik Buterin sold two trillion DOG tokens on Uniswap V4, sparking a ripple of market activity. He swapped the tokens—likely sent to him unsolicited—for 4.43 ETH, worth about $10,800. At the time of the sale, DOG’s price dipped sharply. Within minutes, ETH’s hourly trading volume jumped as traders and automated bots reacted.
Meme tokens rely on community trust and steady liquidity. When a high-profile wallet like Buterin’s unloads a large balance, holders often panic. They rush to exit positions, which drives prices down further. In DOG’s case, the token now trades under fresh pressure.
Previously, Buterin received similar large transfers of tokens like Shiba Inu. In that instance, Shiba Inu recovered and climbed to a leading meme-coin ranking. However, DOG faces a tougher test. Its trading volume and developer support remain far lower than Shiba Inu’s at equivalent stages.
#PeckShieldAlert #vitalik.eth – labeled address swapped 2T $DOG for ~4.43 $ETH (worth ~$10.8K) pic.twitter.com/VXku4rtGis
— PeckShieldAlert (@PeckShieldAlert) June 27, 2025
For DOG to stabilize, its community must shore up liquidity pools on exchanges. They may need to offer incentives—such as yield farming rewards—to keep tokens on the market. Otherwise, any further token dumps could push DOG into free fall.
Meanwhile, ETH traders will watch if this swap marks a short-lived spike or a broader trend. Large token dumps into ETH can strain liquidity and widen bid-ask spreads. They may also trigger cascading liquidations in margin and futures markets.
On the bright side, ETHNews note that 4.43 ETH is a modest amount for Buterin. In isolation, it should not sway ETH’s multi-billion-dollar market cap. Yet the psychological impact on token-swap dynamics can outweigh the raw numbers.
In the coming days, DOG holders will gauge whether other major wallets follow suit. If not, the token may regain stability once selling pressure eases. Still, the incident serves as a reminder: even small trades by key figures can fuel rapid shifts in crypto markets.
