The Ethereum Foundation put pressure on the market with $1.68 million in ETH sales

2024-01-23 03:21:08

Ethereum prices have fallen by more than 4% over the past day due to significant selling pressure.

According to crypto analytics firm Arkham Intelligence, the Ethereum Foundation, a nonprofit dedicated to the Blockchain network ecosystem, dumped $1.6 million worth of ETH.

Data from the platform shows that the foundation sold 700 ETH using the CoW protocol for $1.6 million in DAI Stable Coin. Subsequently, the funds were transferred to Address “0x9ee… 313D”, the Address is identified by Etherscan as a funding provider.

The deal could happen when ETH was valued at around $2,400, very similar to the previous one on January 16. In that transaction, the Foundation exchanged 100 ETH for $253,000, and the funds were transferred directly to the funder’s Wallet.

Despite these recent sales, the Ethereum Foundation maintains a large portfolio of Crypto Assets. It currently holds 312,894K ETH, valued at approximately $747.4 million, and 31,2K WETH, valued at approximately $74.65 million. Its other assets include $1.96 million in DAI, $113,610 in USDC and $72,970 in BUSD.

Given that the Foundation holds a large amount of ETH, its trading activity tends to affect the price movement of the asset. As a result, market watchers often monitor their trades for potential insights into the organization’s plans.

As a result, on-chain data shows that the Ethereum Foundation’s recent sell-off has caused the Ethereum price to drop by 4.3%, currently trading at $2,386 at press time.

Ethereum Dencun Upgrade

Interestingly, these funding changes coincide with the recent launch of the Dencun upgrade on the Ethereum network Testnet Goerli on January 17. The upgrade is designed to reduce gas fees and increase transaction speed by improving the network’s Layer 2 rollup.

This upgrade is the most technological advancement ever made by the Blockchain network since the Shapella Hard Fork allowed withdrawals of staked Ether (stETH).

However, a bug caused the startup of the network to be delayed by about four hours, and then the problem was fixed with a patch, allowing the network to run smoothly.

According to Dencun’s test plan, the next phase of development will take place soon, with plans to upgrade to the Sepolia Testnet and Holesky Testnet soon.

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