Ethereum Foundation Converts $2.76 Million in ETH to USDC, Impacting Crypto Markets
In a significant move reported by crypto analytics firm Scopescan, the Ethereum Foundation, a key player in Ethereum’s development, has converted 1,700 ETH valued at $2.76 million to Circle’s USDC stablecoin. This transaction was executed via the decentralized exchange Uniswap.
According to a report released in April 2022, the Foundation held approximately 395,000 ETH, constituting 0.297% of Ethereum’s total supply in Q1 2022. Notably, the Foundation allocated $48 million for research and development, as well as grants to Ethereum developers during the financial year 2021.
DeFiLlama data reveals the Foundation’s current holdings stand at 316,488 ETH, amounting to an impressive $502.7 million.
Despite multiple attempts, the Foundation has yet to respond to Decrypt’s request for comment.
Past instances of the Foundation moving tokens to crypto exchanges have historically led to declines in Ethereum’s price. For instance, on May 6, 2023, a transfer of nearly 15,000 ETH worth $28.5 million to Kraken marked a local top. Similar trends occurred in November 2021 and May 2021 when transfers coincided with price peaks, impacting Ethereum’s value.
Today’s sale of 1,700 ETH, though comparatively smaller at $2.76 million, raises questions about potential market reactions. Ethereum is currently priced at $1,595, reflecting a 1.6% decrease since yesterday according to CoinGecko.
Stay tuned for more updates on this developing story.