Ethereum Foundation Converts 1,700 ETH to USDC Stablecoin
The Ethereum Foundation, a non-profit organization responsible for developing and promoting Ethereum, has converted 1,700 ETH worth $2.76 million to Circle’s USDC stablecoin. This transaction was reported by crypto analytics firm Scopescan as the foundation used Uniswap to convert Ethereum for USDC.
In a previous report from April 2022, the Foundation disclosed that it held around 395,000 ETH, representing 0.297% of Ethereum’s total supply by Q1 2022. The report also revealed that the Foundation spent $48 million on research and development and grants to developers working on Ethereum in the financial year 2021.
According to DeFiLlama data, the organization currently holds 316,488 ETH worth $502.7 million. However, the Foundation did not provide any immediate response to Decrypt’s request for comment.
Ethereum and its Foundation
Previous instances where the Foundation moved its tokens to crypto exchanges have been followed by declines in the price of Ethereum. For example, on May 6, 2023, the Ethereum Foundation transferred nearly 15,000 ETH worth $28.5 million to Kraken cryptocurrency exchange, which marked a local top in Ethereum’s price.
A similar pattern occurred around 18 months prior when the Foundation transferred 20,000 ETH worth $95 million to Kraken on November 11, 2021. Once again, this coincided with a peak in Ethereum’s price.
In May 2021, the organization transferred just over 35,000 ETH worth $123 million. Following this transfer, Ethereum’s price dropped significantly within weeks.
Hot Take: Ethereum Foundation Converts ETH to USDC Again
The Ethereum Foundation has converted 1,700 ETH worth $2.76 million to Circle’s USDC stablecoin. This move by the Foundation follows a pattern seen in the past, where similar transfers have coincided with declines in Ethereum’s price.
While the amount of ETH sold this time is relatively small compared to previous transfers, it will be interesting to see if it has any impact on Ethereum’s price in the coming weeks. Investors and traders will be watching closely to see how the market reacts to this latest development from the Ethereum Foundation.
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