As a seasoned researcher with years of experience tracking the cryptocurrency market, I have witnessed firsthand the intricacies and complexities that surround blockchain projects like Ethereum. The recent sale of 100 ETH by the Ethereum Foundation for a substantial amount of DAI raises some interesting questions about their strategy and long-term vision.
On November 12th, the non-profit organization backing the world’s second-biggest blockchain, Ethereum Foundation, exchanged 100 Ether (ETH) for approximately 334,315.7 Dai.
The sale marks the foundation’s initial Ethereum (ETH) transaction since it published its 2024 report a week ago.
Ethereum Foundation’s ETH Sales
Based on data from ‘Spot On Chain,’ it’s reported that Ethereum Foundation offloaded a total of 4,266 Ether in the year 2024. This sale generated approximately $11.83 million, with an average price of around $2,773 per Ether token. In September, they sold 1,250 Ether, valued at about $3.07 million, and later in October, they sold another 300 Ether worth roughly $759,000. These transactions were made in nearly weekly instalments over a period of two months.
Consequently, the foundation has encountered queries from the public regarding why it decides to liquidate instead of holding onto its ETH assets. To clarify this matter, Ethereum co-founder Vitalik Buterin responded to these doubts, stating that these sales serve essential purposes, like rewarding researchers and developers who contribute significantly to technological progress.
As a crypto investor, I’d like to emphasize that the funds are not only fueling the growth of Ethereum but also boosting privacy-focused zero-knowledge (ZK) technology, making accounts more intuitive, and organizing global events to amplify Ethereum’s presence. According to Vitalik Buterin, these initiatives have fortified Ethereum’s security and dependability, keeping the blockchain running smoothly since its inception in 2016.
In a recently disclosed financial statement from 2024, the Ethereum Foundation unveiled that its funds amounted to approximately $970.2 million. This sum is broken down into two main categories: crypto investments worth about $788.7 million and non-digital asset investments totaling around $181.5 million. Moreover, more than 99% of the foundation’s crypto investments are Ethereum (ETH), representing just over 0.26% of the entire Ether supply.
The collective Ethereum system holds approximately $22.2 billion in reserves, which are administered by various foundations, organizations, and Decentralized Autonomous Organizations (DAOs). Notably, the Ethereum Foundation controls around 4.4% of this amount. Regarding funding, during the period of 2022 to 2023, the ecosystem distributed a total of $457 million, with the Ethereum Foundation accounting for almost half of that sum, or about $240.3 million.
Ether’s Price Growth
Despite recent selling, ETH’s price remains steady. As the second largest cryptocurrency globally, it has been soaring, maintaining its bullish trend from the past week. During this time, it has increased by more than 33% and is currently being traded above $3,230.
As an analyst, I’m observing a significant surge in inflows towards the spot Ethereum ETFs, setting a new record at approximately $295.5 million. Notably, two major players, BlackRock and Fidelity, have each drawn in $100 million with their respective products – ETHA and FETH.
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2024-11-12 22:36