💸Ethereum Foundation sells ETH again as prices rise, Vitalik Buterin explains the use of funds
The Ethereum Foundation sold 100 ETH during the recent price rise, which was their first transaction since the release of the 2024 report last week.
According to Spot On Chain, in 2024, the Ethereum Foundation sold 4,266 ETH at an average price of $2,773 per ETH, raising a total of $11.83 million. In September and October of the same year, they also sold 1,250 and 300 ETH respectively, and these sales were almost weekly.
Some people asked, why does the foundation sell instead of staking? Vitalik Buterin responded that the money is used to fund researchers and developers, as well as key programs to promote technological progress. He also said that the money is also used to support privacy protection technology, user-friendly account abstraction and activities to promote Ethereum. Buterin added that these initiatives make Ethereum more secure and reliable, and contribute to the stable operation of the blockchain.
In the latest 2024 financial report, the Ethereum Foundation revealed that they have $970.2 million in funds, of which $788.7 million is in cryptocurrencies and $181.5 million is in non-digital assets. At the same time, more than 99% of the cryptocurrencies held by the foundation are ETH, accounting for 0.26% of the total supply.
Currently, the entire Ethereum ecosystem has a total of $22.2 billion in reserves, managed by foundations, organizations and DAOs, of which the foundation manages 4.4%. In addition, $457 million was deployed to the ecosystem between 2022 and 2023, with the foundation alone contributing half of that, reaching $240.3 million.
It is worth noting that the price of ETH does not seem to be affected by the sell-off. As the world's second-largest cryptocurrency, the price of ETH has risen 30% since last week, and the current price is over $3,170.
At the same time, the funds flowing into the Ethereum spot ETF reached a new record of $295 million on Monday alone, with BlackRock's ETHA and Fidelity's FETH both attracting $100 million.
💬 What do you think? What do you think about the Ethereum Foundation's ETH sell-off? Are you satisfied with Vitalik Buterin's explanation of the reasons for non-staking? See you in the comments!
