The Ethereum Foundation has taken significant steps to avert the threat of liquidation of their assets on the MakerDAO platform, marking an important event in the Ethereum ecosystem.
Ethereum Foundation and Liquidation Risks
According to an update from Lookonchain, a wallet suspected to belong to the Ethereum Foundation deposited 30,098 ETH valued at $56.08 million into a MakerDAO vault. This was done to lower the liquidation price on the DeFi protocol. The wallet now holds 100,394 ETH worth $189 million with a liquidation price of $1,127.06 per ETH.
Ethereum Price Outlook
The deposit signifies the Ethereum Foundation's role in stabilizing the ETH price in the DeFi ecosystem, particularly after market volatility following the Bybit hack in February. Meanwhile, data from the IntoTheBlock platform shows that $1.8 billion worth of ETH was withdrawn from exchanges last week — the highest weekly amount since December 2022.
Overall Ethereum Market Situation
Historically, Ethereum's price has fluctuated. In November 2021, ETH reached an all-time high of $4,878.26 but has since failed to return to those levels. As of this writing, the ETH price has dropped below $1,800. The current market situation masks the overexposure in ETH price, which could become unsustainable in the future.
The Ethereum Foundation continues to play a significant role in stabilizing the ETH ecosystem, taking actions to mitigate risks on the DeFi platform. However, there remains the question of whether the market will handle the current challenges in the future.
