On-chain data showed that a wallet apparently belonging to Ethereum Foundation, the organization behind Ethereum, just swapped 1,700 ETH for $2.76 million in stablecoin USD Coin (USDC) via DEX Uniswap. On-chain data from Arkham Intelligence also showed that this wallet holds 240.68 ETH, 3.2 million USDC, 49,700 DAI and 10,000 ARB.
The Ethereum Foundation’s move would not be unusual if the Ethereum network maintains active activities; however, it occurred when Ethereum blockchain recorded a sharp decline in both NFT and DeFi transactions. In just the past 30 days, the global ETH supply has dropped nearly 30,000 ETH ($47.9 million).
It is currently unclear what the purpose of the transaction is, but looking back at the wallet’s transaction history, each Ethereum Foundation’s move had a negative impact on ETH price, causing a sharp decline afterward. For example, Ethereum Foundation, in May 2023, transferred a total of 15,000 ETH (worth $30 million at that time) to the Kraken exchange. In March 2021, Ethereum Foundation also transferred 28,000 ETH to Kraken and ETH price began to decrease 1 week later. Then, in November 2021, ETH dropped from a peak of $4,800 to $4,300 as Ethereum Foundation transferred 20,000 ETH to Kraken.
Ethereum founder Vitalik Buterin on October 7 also made the latest ETH transaction when transferring 1,000 ETH ($1.64 million) to Bitstamp.
Another piece of information that may affect ETH price is that Justin Sun, a board member of Huobi Global, withdrew 3,951 ETH from Lido and deposited 20,000 ETH into Binance.
ETH fell nearly 3% to $1586.94 over the past 24 hours.