In a rather tense geopolitical context, the value of Ethereum (ether) has recently decreased by approximately 2.5%. This decline could also be linked to the Ethereum Foundation liquidating some of its ETH reserves. According to data from Arkham, a wallet associated with the Ethereum Foundation, labeled as a “Grant Provider” on Etherscan, made a significant transaction. It exchanged a hefty 1,700 ETH, translating to an impressive $2.7 million in USDC.
Effects on the market from the Ethereum Foundation’s ETH sale
The exact reason behind this substantial swap by the Ethereum Foundation remains undisclosed, but the market reaction has been swift. Ether losses extended to 2.5% within 24 hours of the transaction, making ETH one of the most affected major tokens during this period.
The Ethereum Foundation, although not a centralized body controlling the Ethereum network, holds considerable influence. Its decisions and actions can steer token prices and shape perceptions of Ethereum among developers and investors. With significant assets – in April 2022, they held a staggering amount of $1.29 billion worth of Ether, equivalent to 0.297% of the total Ether supply and about $300 million in non-crypto investments – their market activities are closely monitored and often generate tangible ripples throughout the crypto space.
