Ethereum Foundation sells $6.4 million for routine budget
Crypto

Ethereum Foundation Sells $6.4 Million for Routine Budget

While the Ethereum Foundation offloaded 2,785 ETH to cover operational expenses, the impact of daily volume remained limited in the market at $2,300 support.
Yatırım Masası2 min read
ETHBTCUSDS

As of 03:00 on October 27, amid weak sentiment prevailing in the crypto market, Ethereum is trading just above its critical $2,300 support at the $2,306.97 level, down 0.58%. In a transaction that sparked market debate over a selloff, the Ethereum Foundation swapped its $6.4 million holding of 2,785 ETH for the dollar-pegged stablecoin USDS via decentralized exchange CoW Swap to cover operating expenses.

Reflected in records from on-chain data platform Onchain Lens, the sale represents less than 1 in 1,000 of the Ethereum network's approximately $9.0 billion 24-hour trading volume. During the same time frame, Bitcoin also fell 0.53% to $79,585.86, recording $26.0 billion in trading volume. Contrary to the panic perception in the market, Bitmine, the largest ETH holder at an institutional scale, bought nearly 4 times the size of this transfer just last week.

Why is the Ethereum Foundation selling ETH?

The non-profit Ethereum Foundation cannot pay researcher and software developer salaries and project grants in ETH due to cash requirements. The organization's treasury policy dated June 2025 mandates regular sales whenever cash reserves drop below 2.5 years of operational costs. Seeking to reduce dependence on the open market, the foundation cut its 2026 budget by 40% in June. The management has also been staking approximately 70,000 ETH since February to generate revenue without direct token sales, and previously kept a 10,000 ETH sale off the open market by executing it directly with Bitmine through a private over-the-counter agreement.

Can the market hold the $2,300 support?

On the same day, a wallet that acquired 100,000 ETH at $0.31 during the initial token offering in 2014 transferred 1,500 ETH worth approximately $3.5 million to exchanges within 8 hours. Even when considering the early investor's profit-taking alongside the foundation's transaction, the total amount does not come close to even 0.2% of daily trading volume. In terms of price direction, rather than isolated budget swaps, spot ETF inflows and the pace of Bitmine's purchases paint a more decisive picture for market flow.

This content is for information purposes only and does not constitute investment advice.

Add Yatırım Masası as a preferred source on Google
This article is a translation of the original Turkish version published by Yatırım Masası. Read the original in Turkish
Prepared by the Yatırım Masası newsroom from current market developments and official data.
This is not investment advice. The data and commentary in this article are for information only; make investment decisions based on your own research and, where needed, advice from a licensed professional.

Latest news