Outside Source
The Ethereum Foundation – a non-profit entity that supports the second-largest blockchain – sold 100 ETH for 334,315.7 DAI on November 12th.
The sale represents the foundation’s first ETH transaction since releasing its 2024 report last week.
Ethereum Foundation’s ETH Sales
According to the popular blockchain analytics platform ‘Spot On Chain,’ in 2024 alone, the Ethereum Foundation sold 4,266 ETH, raising $11.83 million at an average price of $2,773 per token. In September, the foundation sold 1,250 ETH, then worth approximately $3.07 million, followed by 300 ETH valued at $759,000 in October. These sales were conducted in nearly weekly batches over the two months.
As a result, the foundation has faced questions from the community about why it chooses to sell rather than stake its ETH holdings. In response, Ethereum co-founder Vitalik Buterin addressed these concerns, explaining that the sales in question fund critical initiatives, such as compensating researchers and developers who drive technological advancements.
He highlighted that proceeds also support privacy-enhancing zero-knowledge (ZK) technology, user-friendly account abstraction, and global events promoting Ethereum. According to Buterin, these initiatives have strengthened Ethereum’s security and reliability, contributing to the blockchain’s uninterrupted operation since 2016.
In a recently published financial report for 2024, the Ethereum Foundation revealed that its treasury held $970.2 million, comprising $788.7 million in crypto and $181.5 million in non-digital asset investments. Over 99% of the foundation’s crypto holdings are in ETH, making up 0.26% of the total ether supply.
The Ethereum ecosystem as a whole has $22.2 billion in treasury reserves, managed by foundations, organizations, and DAOs, with the Ethereum Foundation overseeing 4.4% of this total. In terms of funding, the ecosystem deployed $457 million in 2022-2023, with the Ethereum Foundation contributing nearly half at $240.3 million.
Ether’s Price Growth
ETH’s price remained unfazed by the latest offloading. The world’s second-largest cryptocurrency by market cap has been riding high, continuing its bullish momentum since last week, gaining over 33% during that period and currently trading above $3,230.
Meanwhile, flows into spot Ethereum ETFs reached a new record of $295.5 million, with BlackRock’s ETHA and Fidelity’s FETH each attracting $100 million.
This article first appeared at CryptoPotato
