The Ethereum Foundation has liquidated approximately 1,700 ETH worth $2.76 million into the stablecoin USDC, according to transaction data from analytics firms.
The non-profit organization converted the Ethereum directly into USDC via the Uniswap decentralized exchange. The associated wallet now holds around $3.7 million in assets, including 240 ETH along with USDC, DAI, and ARB tokens.
The foundation’s ETH reserves have declined from 395,000 ETH in Q1 2022, equal to 0.3% of total Ethereum supply. However, it still retains substantial holdings.
Ethereum Foundation’s reasons for ETH sale are unclear
While the reasons for the sale are unclear, the converted amount seems to align with funding the foundation’s ongoing operations, including research grants.
In 2021, total expenses amounted to $48 million, including developer grants aimed at improving Ethereum infrastructure. Ongoing bear market conditions may have necessitated liquidating portions of ETH reserves to maintain funding.
The converted ETH amounts to a small fraction of holdings prudently utilized to further Ethereum’s growth during challenging markets.
While the Ethereum Foundation still holds substantial assets, its activities are impacted by price declines like any other entity. ETH has dropped below $1,600 at press time, with a 2.4% drop in value over the last 24 hours. According to CoinMarketCap data, ETH is trading at $1,592.