Why Ethereum foundation sold 1700 ETH today?
Let's explore the reasons behind ethereum foundation's sale of 1,700 #ETH , their previous selling activities, and the possible motivations.
Before delving into their past selling behavior, it's important to understand the business side of the #Ethereum Foundation.
As of now, the Ethereum Foundation is not generating any profit; they burn the entire base transaction fee revenue. According to #tokenterminal, Ethereum's onchain earnings remained positive throughout 2023, except for the last month when Ethereum experienced an on-chain loss of $10.96 million.
The current month also shows losses for Ethereum, totaling $9.34 million. These losses are directly related to decreased activity on the Ethereum network, contributing to recent ETH inflation.
The Ethereum Foundation currently holds 316.8K ETH. Over the past three months, they have sold around 2,000 ETH, with an additional 1,700 ETH sold recently.
The Ethereum Foundation received 1,700 ETH from a multisig wallet:
0x23292996e6d30c04a21ca8203dccf88cb418395b
which also holds 1,700 ETH that might be sold in the near future.
But why is the Ethereum Foundation selling ETH?
According to a report, the Ethereum Foundation allocated a total of $48 million for research and development as well as grants to developers working on Ethereum during the 2021 financial year.
The recent ETH sale from the Foundation could be for similar reasons, such as covering salaries and granting funds to developers collaborating with the Ethereum Foundation.
The specific reasons behind the sales remain largely unknown, but they have created selling pressure on the ETH price, which has decreased by 3.86% today.