Ethereum Foundation Resumes Selling ETH Amid Price Rally

The Ethereum Foundation, a non-profit entity that supports the second largest blockchain, sold 100 ETH for 334,315.7 DAI on November 12.

The sale represents the foundation’s first ETH transaction since it published its 2024 report last week.

Ethereum Foundation ETH Sales

According to the popular blockchain analytics platform ‘Spot On Chain’, in 2024 alone, the Ethereum Foundation sold 4,266 ETH, raising $11.83 million at an average price of $2,773 per token. In September, the foundation sold 1,250 ETH, worth approximately $3.07 million, followed by 300 ETH valued at $759,000 in October. These sales were made in almost weekly batches over the two months.

As a result, the foundation has faced questions from the community as to why it is choosing to sell rather than participate in its ETH holdings. In response, Ethereum co-founder Vitalik Buterin addressed these concerns, explaining that the sales in question fund critical initiatives, such as compensating researchers and developers who drive technological advances.

He emphasized that the proceeds also support privacy-enhancing zero-knowledge (ZK) technology, user-friendly account abstraction, and global events promoting Ethereum. According to Buterin, these initiatives have strengthened the security and reliability of Ethereum, contributing to the uninterrupted operation of the blockchain since 2016.

In a recently published financial report for 2024, the Ethereum Foundation revealed that its treasury had $970.2 million, which includes $788.7 million in crypto and $181.5 million in non-digital asset investments . Over 99% of the foundation’s crypto holdings are in ETH, representing 0.26% of the total ether supply.

The Ethereum ecosystem as a whole has $22.2 billion in treasury reserves, managed by foundations, organizations and DAOs, with the Ethereum Foundation overseeing 4.4% of that total. In terms of funding, the ecosystem deployed $457 million in 2022-2023, with the Ethereum Foundation contributing almost half of that at $240.3 million.

Ether price growth

The price of ETH was unchanged by the latest download. The world’s second-largest cryptocurrency by market cap has been on a big rally, continuing its bullish momentum since last week, gaining more than 33% during that period and currently trading above $3,230.

Meanwhile, flows into spot Ethereum ETFs hit a new record of $295.5 million, with BlackRock’s ETHA and Fidelity’s FETH each attracting $100 million.

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