Ethereum Foundation Sells 450 ETH for DAI Amid Broader 2024 Sales Strategy

Ethereum Foundation Sells 450 ETH for DAI Amid Broader 2024 Sales Strategy

The Ethereum Foundation has continued its pattern of selling ETH this year, with its latest transaction involving the sale of 450 ETH for 1.029 million DAI.

According to data from analytics platform SpotOnChain, on September 9, the Ethereum Foundation— the primary non-profit organization backing the Ethereum blockchain—sold 450 ETH, exchanging it for the stablecoin DAI. This followed an earlier sale of 100 ETH for 241,000 DAI on September 5, bringing the Foundation’s total ETH sales for 2024 to 3,066 ETH.

Additionally, on September 6, the Foundation transferred 1,000 ETH, valued at $2.38 million, to a separate multi-signature wallet, which is also expected to be converted into stablecoins. Another 1,000 ETH was moved the next day.

So far in 2024, the Foundation has accumulated around 8.66 million DAI while still holding 274,012 ETH across seven wallets, worth approximately $637 million.

In August, Ethereum co-founder Vitalik Buterin also made notable transfers, moving a total of 3,800 ETH—worth roughly $9.99 million—into a multi-signature wallet. The transactions occurred in two phases, with 3,000 ETH transferred on August 9 and 800 ETH on August 30. Since then, 760 ETH from the receiving wallet was sold for 1.835 million USDC, averaging a price of $2,414 per ETH.

These transfers led to speculation that Buterin was selling ETH for profit, but he refuted these claims, stating that the funds were intended for ecosystem development and philanthropic initiatives.

Clarification from insiders While the Ethereum Foundation has not yet publicly addressed its recent ETH sales, insiders have explained that these actions are part of its routine financial strategy. Aya Miyaguchi, the Foundation’s executive director, previously noted that the organization maintains an annual budget of around $100 million, which covers operational costs, grants, and salaries—expenses often requiring fiat currency. To manage these needs, the Foundation regularly converts a portion of its ETH holdings into stablecoins like DAI.

“There will be planned and gradual sales,” Miyaguchi said at the time.

Meanwhile, Ethereum Foundation researcher Justin Drake revealed that a financial report will be released soon, offering further details on the recent sales.

In the meantime, ETH’s price has been under pressure, dropping 11.9% over the past 30 days. Many investors are concerned that these sell-offs could lead to further declines in the cryptocurrency’s value.