The Ethereum Foundation has recently sold 100 ETH for 241,000 DAI. This sale, which occurred a few hours ago, is part of the foundation’s ongoing strategy to convert its Ethereum holdings into stablecoins, as reported by Lookonchain.
Ethereum Foundation Converts 2,616 ETH to 7.64M DAI Since 2024
Before that, on July 31, the Ethereum Foundation made a similar transfer, exchanging 150 ETH for 487,260 DAI. These sales are graphical of the foundation’s plan to balance its revenue by diversifying its portfolio and converting its assets from ETH to DAI which are stability coins. Such conversions are useful for controlling risk and protecting against the price swings of Ethereum.
So far this year, the Ethereum Foundation has completed a total of 16 swaps involving 2,616 ETH for the equivalent amount of 7.64 million DAI through DEXs. In the course of these transactions, the average price was slightly over $2,922 for every ETH. This consistent pattern of converting Ethereum into stablecoins underlines the systematic approach of the foundation and its stability and risk aversion goals.
Ethereum Foundation’s Strategy Shift Could Influence Crypto Market
Such operations have drawn the attention of the crypto audience because they may have an impact on ETH’s liquidity and its rate. By utilizing lower ETH and higher stablecoin balances, the foundation could be attempting to decrease exposure to threats connected with Ethereum’s price fluctuations. This strategy also aligns with the current market trends where institutions and large holders have sought to diversify their assets and minimize on risks.
As Ethereum Foundation continues to employ this strategy, further actions could be practically decisive to the total available supply of ETH and price. It remains to be seen how these fluctuations will affect the rest of the cryptocurrency market, as investors and analysts will likely closely monitor these movements.
Source: https://blockchainreporter.net/ethereum-foundation-continues-selling-100-eth-sold-for-241k-dai/