According to blockchain analytics firm Arkham Intelligence, ETH’s price once surged by over 500% in the months following a significant Ethereum Foundation sale. However, it’s uncertain if history will repeat itself this time.
In an Aug. 25 post on X, Arkham noted that the Ethereum Foundation sold at its peak in both May and Nov. 2021. But in 2020, they offloaded 100,000 ETH just before it surged sixfold.
On Aug. 23, the Ethereum Foundation deposited about 35,000 ETH, worth $96 million, to a Kraken wallet. According to Arkham data, on Dec. 17, 2020, they sold around 100,000 ETH for $63 million, with each Ether priced at $635.
Five months later, on May. 12, 2021, the price soared to $4,182. Then, by Nov. 10 of that same year, it reached a peak of $4,891.70.
Ethereum Foundation explains the transfer of 35,000 ETH
Amid rumors about the transfer, Ethereum Foundation’s executive director, Aya Miyaguchi, clarified on X that it was simply part of their “treasury management activities.” In her post, Miyaguchi explained that the transfer meant to balance their finances and emphasized that it was not “the same as a sale.”
Miyaguchi mentioned that the Ethereum Foundation has an annual budget of $100 million, which covers things like grants and salaries. However, some people can only be paid in traditional currencies instead of crypto.
ETH’s price has remained steady recently. On Aug. 24, it dipped to $2,656, rose to $2,808 on Aug. 25, and settled at $2,743 by Aug. 26. This move follows a transfer last month when the Ethereum Foundation shifted 92,000 ETH, valued at over $253 million, to an unknown wallet.
On May. 6, 2023, the Ethereum Foundation sent nearly $30 million in Ether to Kraken. Although Ether’s price dropped 4.8% to $1,900 that day, it was a minor dip in a broader recovery. Arkham reports that the Foundation still owns about 273,000 ETH, worth over $751 million at today’s prices.
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