Ethereum Foundation-Linked Wallet Sparks Market Buzz Amid ETH Sales

Ethereum wallet linked to EF sold over 6,000 ETH recently, sparking market attention while foundation clarifies it’s not involved.

EF holds under 0.3% of total ETH supply today, and large wallet sales reflect independent activity, not foundation liquidation.

Ongoing EF reforms focus on transparency, DeFi participation, and treasury discipline, boosting investor confidence in Ethereum’s growth.

Ethereum investors are closely watching a wallet linked to the Ethereum Foundation as it sells significant amounts of ETH, raising market attention. Lookonchain reported that wallet 0xF39d sold 1,300 ETH worth $5.87 million at $4,518 about 11 hours ago

Over the past three days, the wallet sold a total of 6,194 ETH worth $28.36 million at an average price of $4,578. Additionally, earlier today, the same wallet sold 1,100 ETH worth $5.06 million at $4,602, intensifying speculation among traders.

Large ETH Sales Spark Clarification

Previously, this wallet moved 1,695 ETH for 7.72 million DAI at $4,556 within two hours. Reports indicate that the wallet originally received 20,756 ETH from the EF wallet “EF 1” back in 2017. Consequently, many investors speculated that the Ethereum Foundation might be liquidating its holdings during ETH’s price rally above $4,500, around 5% below its all-time high

However, Hsiao-Wei Wang, co-executive director of the Ethereum Foundation, clarified that the foundation does not control this wallet. She explained that although roughly 9% of ETH supply went to the EF during Ethereum’s 2014 ICO, today, the foundation holds under 0.3% of the total supply. Hence, the sales are independent of EF treasury decisions.

Foundation Reforms and Transparency Efforts

The Ethereum Foundation has implemented changes to improve transparency and financial discipline in spite of previous complaints about hazy treasury administration and haphazard ETH sales.

Moreover, the foundation now actively engages in ecosystem support, including DeFi participation to grow its treasury and benefit Ethereum’s broader development.

Additionally, Wang highlighted that multiple addresses linked to EF exist due to historical allocations, but most are not actively managed by the foundation.

Despite their size, investors should be aware that these sales do not necessarily signify EF liquidation. Nevertheless, because such fluctuations have the potential to affect the short-term supply and price volatility of ETH, the market continues to respond to them.

Large on-chain transactions affect the Ethereum market, particularly from addresses that have historically been connected to the foundation. Additionally, ETF's improvements and emphasis on transparency reassure the public and boost trust in the stability of the Ethereum ecosystem over the long run.

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