The Golem Network ETH sale has become the main attraction in the crypto landscape. This move, which involved quite a large Ethereum (ETH) liquidation, was combined with ETH staking incentives.
Also Read: Can Ethereum [ETH] Hit $3,500 This Weekend?
What is Golem’s Strategy and How it Will Impact the Ecosystem?
Recent ETH Sales by Golem Network
The Golem Network started selling 3000 ETH daily, which is a large amount. A recent transaction reached a whopping $9.37 million. This segmented and gradual asset liquidation strategy has caused a massive transfer of funds to exchanges.
Editors at The Block said:
“The Golem Network has sent over $100 million in ETH to exchanges in the last month, a significant portion of its overall reserves.”
Over 40 days, Golem’s total ETH sales reached 45.000 ETH and is therefore valued at $142.39 million. The transactions were done using major crypto exchanges, including Binance, Coibase, and Bitfinex.
Ethereum Staking and the Development of The Golem Network
To complement its sales strategy, Golem Network also pledged 40,000 ETH for staking purposes. This move aligns with other choices of ETF staking incentives.
“In the past 40 days, they have sold 45,000 ETH (approximately $142.39 million). In addition, they also pledged 40,000 ETH today, and it is suspected that 75% of the pledge earnings will be used to incentivize the development of the Golem network and ecosystem.” – BitGet
Furthermore, the project wants to allocate 75% of the staking income to incentivize the development of the Golem Network and its ecosystem. This method is designed to create growth and innovation within the Golem framework.
Also Read: 21Shares Files Updated S-1 For Spot Ethereum ETF
What is The Market Reactions and Investor Sentiment?
Market participants have responded differently to the Golem Network ETH sale and staking strategy.
“The Golem team is shifting funds from its treasury into top centralized exchanges. The project’s treasury is now larger than the market cap of the GLM token, leaving investors angry.” – Cryptopolitan
Golem Reasoning and Future Plans
The Golem team has decided to respond to the investors’ worries. Moreover, the decisions have been framed as components of a time-bound staking experiment.
Also Read: Ethereum Price Prediction: Can ETH Hit $4K After SEC Decision?
“The Golem team explained the treasury moves are part of a staking experiment that should conclude in August.”
The experiment ends in August and might offer more significant insights into the long-term strategy that makes the Golem Network ETH sale and staking initiatives.