Ethereum Foundation announced the sale of $43 million in ETH, leading to short-term price pressure despite increasing interest in staking.
Ethereum Foundation Confirms ETH Sale
On Tuesday, the Ethereum Foundation confirmed it will liquidate 10,000 ETH, totaling approximately $42.7 million. The funds will be used to support ecosystem initiatives. The foundation plans to sell the assets in smaller tranches through centralized exchanges to minimize market disruption. According to the foundation, the proceeds will support research, grants, and philanthropic efforts. Despite the sale, it still holds a treasury of 231,600 ETH, valued near $1 billion.
Record Staking Demand Among Institutions
Despite the pressure from the sale, demand for ETH staking surged to a two-year high of 860,369 ETH. This figure corresponds to $3.7 billion and is related to rising network confidence and institutional investment. Currently, 35.7 million ETH are staked, constituting 31% of the total supply. Institutional activity continues to expand, with over 70 treasury participants holding 4.7 million ETH.
Market Reaction Analysis
Following the announcement of the sale, ETH price dipped by 1% to $4,321, reflecting a cautious market sentiment. Analysts note a decrease in inflows into ETH spot ETFs and broader market risk, which also affects the price. Earlier this year, the foundation had several sales that caused price fluctuations, but now an increase in institutional interest is observed.
In conclusion, the Ethereum Foundation's ETH sale exerted short-term pressure on the price, but rising interest in staking and institutional investments suggest long-term confidence in Ethereum's outlook.
