- • The Ethereum Foundation sold 100 ETH for $334,315.7 DAI on November 12th, resuming ETH sales amid the price rally.
- • Vitalik Buterin explained that the Foundation’s ETH sales are essential for funding developers, research, and other Ethereum ecosystem advancements.
- • The Ethereum Foundation’s treasury held $976.2 million, with over 99% of its crypto holdings in ETH, making up 0.26% of the total ether supply.
The Ethereum Foundation has resumed selling ETH from its reserves, making its first transaction in several weeks amid a strong price rally for the cryptocurrency. The sale comes as the Foundation seeks to fund critical development despite community concerns.
Introduction
The Ethereum Foundation, a non-profit supporting the Ethereum blockchain, sold 100 ETH this week for over $330,000. This represents the first transaction since the Foundation released its 2024 financial report last week.
Ethereum Foundation’s ETH Sales
According to blockchain analytics platform Spot On Chain, the Ethereum Foundation sold 4,266 ETH in 2024 alone, raising $118.3 million at an average price of $2,773 per token. In September, the Foundation sold 1,250 ETH worth $30.7 million, followed by 300 ETH valued at $759,000 in October. The sales occurred in weekly batches over two months.
As a result, the community has questioned why the Foundation sells ETH rather than staking it. Ethereum co-founder Vitalik Buterin explained the sales fund critical initiatives like compensating researchers and developers, supporting privacy tech, and hosting global Ethereum events. According to Buterin, these efforts strengthen Ethereum’s security and reliability.
Ethereum Foundation Treasury
In a recent financial report, the Ethereum Foundation revealed its treasury held $970.2 million, with $788.7 million in crypto assets. Over 99% of crypto holdings are ETH, comprising 0.26% of the total ether supply.
The Ethereum ecosystem has $2.22 billion in treasury reserves, with the Foundation overseeing 44% of the total. In terms of funding, the ecosystem deployed $457 million in 2022-2023, with the Foundation contributing nearly half at $240.3 million.
Ether Price Growth Unaffected
Despite the latest ETH sales, Ether’s price remains unfazed. The second-largest cryptocurrency by market cap continues its bullish momentum from last week, gaining over 33% and trading above $3,230. Meanwhile, spot Ethereum ETF inflows reached a record $295.5 million.
Conclusion
The Ethereum Foundation relies on periodic ETH sales to fund critical development initiatives and support the ecosystem. Despite community concerns over the sales, co-founder Vitalik Buterin has explained their importance in strengthening Ethereum over the long-term. For now, the sales seem to have little impact on Ether’s strong price performance.
