Ethereum Foundation sold 1700 ETH for 2.76 million USDC, Circle’s stablecoin. In the past 24 hours, the price of ETH has dropped -3%.
Ethereum Foundation and the sale of 1700 ETH for 2.76 million in the USDC stablecoin
According to transaction data, it appears that the Ethereum Foundation made a sale of 1700 ETH for 2.76 million USDC, the USD Coin stablecoin.
In essence, the non-profit organization behind the second-largest crypto by market cap has decided to convert some of its ETH to USDC, through Uniswap’s decentralized crypto-exchange (or DEX).
Currently, the associated wallet contains about $3.7 million in assets, including 240 ETH along with USDC, DAI, and ARB tokens.
Compared to the first quarter of 2022, the Ethereum Foundation’s reserves, which amounted to 395,000 ETH, now appear to be decreasing more and more. The present sale of ETH for USDC, could be in line with funding the foundation’s ongoing operations, including research grants.
Ethereum Foundation sells ETH for USDC: What is the impact on the price of the crypto?
In the past 24 hours, the price of ETH has seen a -3% dump, from $1634 to the current $1583.
This price dump, adds to a bearish trend that ETH has been experiencing for the past week. And in fact, the price of ETH seven days ago was $1667. Hence, the price of ETH has dropped -4% in the last week.
The market cap of the second crypto also seems to have seen a descent. In the past 24 hours, in fact, ETH’s market cap has dropped from $196 billion to the current $190 billion. Seven days ago, ETH’s market cap was at $200 billion.
Contrary to everything, however, is ETH’s trading volume, which, in the past 24 hours, appears to be up by as much as 119%.
The previous transfer of $30 million from ETH to fiat currency
Last 6 May 2023, the Ethereum Foundation had transferred another $30 million in ETH to the Kraken exchange.
Even then, some observers justified the move as a strategy to finance its operations, others, however, as a move to diversify its portfolio.
Still others supported the idea that such a move was intended to promote the liquidity and stability of the crypto market by providing a crypto-exchange with a large volume of ETH.
The fact remains that even on that day, the impact of the Ethereum sale saw the price of ETH drop by nearly 5%.
However, the previous sale of $30 million was much larger than today’s 1,700 ETH sold for precisely $2.76 million in USDC.
Source: https://en.cryptonomist.ch/2023/10/10/ethereum-sells-1700-eth-2-76-million-usdc/