Earlier today, on August 24th, the Ethereum Foundation has made its largest transaction of the year, transferring 35,000 ETH, worth approximately $94 million, to the Kraken exchange, according to data from Spot On Chain. This follows a series of smaller transactions in which the foundation sold 2,516 ETH for $7.4 million in DAI in 2024.
This latest transfer comes as the foundation has gradually reduced its Ethereum holdings over the past few months. It is the most significant movement of ETH in 2024, occurring when speculations are rising about potential interest rate cuts by the U.S. Federal Reserve.
History of Large ETH Tansfers by the Foundation
The cryptocurrency community has expressed disapproval of the large transaction. Concerns have been raised by certain members, who have urged the Ethereum Foundation to be more open about what it does.
The foundation has a history of timing the market with remarkable accuracy. Co-founder of Ethereum Vitalik Buterin stated in 2019 that he had pushed the foundation to sell 70,000 ETH during the height of the 2017 bull run, which was seen as a wise and strategic decision.
The price of Ethereum has held steady despite the significant move. ETH is currently trading at $2,762.61, up 3% over the last day, according to CoinMarketCap. In addition, the market capitalisation of cryptocurrencies has increased by 3.29% to $332.3 billion, suggesting that investor confidence is still high despite the foundation’s significant move.
$94 million ETH Transfer Amid Rate Cut Talks
The decision by the Ethereum Foundation to transfer a sizable amount of its assets to Kraken coincides with expectations on the financial markets of a change in U.S. monetary policy.
U.S. Federal Reserve Chair Jerome Powell hinted that the central bank would think about lowering interest rates in response to worsening labour market conditions and decreasing inflation during the recent Jackson Hole Symposium. Powell hinted that a change in monetary policy would be imminent, even if he did not specify the scope or timing of any rate reductions.
The cryptocurrency market may be significantly impacted by the possibility of reduced interest rates, especially for assets like Ethereum, which have attracted more institutional attention recently.
The Ethereum Foundation’s latest transaction has led to calls for greater transparency regarding its ETH sales. As a major player in the Ethereum ecosystem, the foundation’s actions have the potential to influence market sentiment and pricing.
The timing of this transfer is interpreted by some investors as a sign of the foundation’s outlook for future market moves. Even with the significant money transfer, Ethereum is still in a good position as of now, as seen by the positive growth in both its price and market capitalization.