The Ethereum Foundation has reportedly sold 100 ETH for 226,868 DAI in its latest transaction, continuing a trend of weekly ETH sales over the past three weeks.
According to Spotonchain, the Foundation has sold a total of 650 ETH worth approximately $1.51 million at an average price of $2,323 per ETH.Â
This consistent selling activity has contributed to downward pressure on the Ethereum market, with the price of ETH dropping to $2,303.47, marking a nearly 5% decline over the last 24 hours.
ETH Foundation & Vitalik Continues to Sell ETH
Investor sentiment around Ethereum has turned bearish as the asset struggles to regain momentum. Analysts are questioning its ability to generate revenue, especially in the wake of Ethereum spot ETFs debuting on the market.
The frequent selling by the Ethereum Foundation and wallets associated with Ethereum co-founder Vitalik Buterin has raised concerns about the platform’s future performance.
Large volumes of ETH have been flowing through Ethereum Foundation wallets in recent hours, according to data from Arkham Intelligence, which has increased concerns about a potential price drop. The Foundation has been selling Ethereum regularly ever since spot Ethereum ETFs were introduced.
Significant selling activity has also been observed in wallets associated with Vitalik Buterin. The selling pressure has been increased by a multi-signature wallet that got 3,800 ETH (about $9.99 million) from Buterin in two distinct transactions on August 9 and August 30. The wallet has been progressively selling down its holdings.
No Clarity on These Sellings from the Foundation
Insiders indicate that the Ethereum Foundation’s recent ETH sales are consistent with the organization’s usual financial strategy, despite the Foundation not having made an official statement on the matter.
The Ethereum Foundation’s executive director, Aya Miyaguchi, had previously said that the organisation has a yearly budget of about $100 million, which is mostly allocated to grants, wages, and operating costs.
To address these financial obligations, the Foundation usually transforms ETH into stablecoins like DAI. These costs frequently necessitate transfer from ETH to fiat currency.
According to Ethereum Foundation researcher Justin Drake, the Foundation is scheduled to publish a financial report shortly that should include additional details regarding the current sales activity.
The report might include further information about the Foundation’s financial plan as well as predictions about how long these ETH sales will last at the current rate.
Ethereum’s near-term prospects have been called into question due to the continued sales by both the Ethereum Foundation and wallets affiliated with Vitalik Buterin.
Investors are keeping a tight eye on the issue, with many of them fearing that more selling may result in greater price falls and heightened market volatility.