- The Ethereum Foundation transferred 2,500 ETH to Bitstamp, raising speculation about potential market impacts and operational needs.
- Ethereum’s upcoming EIP-7781 promises to boost transaction speed by 50%, improving efficiency and reducing costs on the network.
According to Lookonchain, a wallet related to the Ethereum Foundation has transferred 2,500 ETH, or around $6.06 million, to the Bitstamp exchange.
Although the Foundation has occasionally made such transfers in the past, this most recent transaction has spurred a lot of conjecture since the Foundation’s actions can indicate possible changes in market dynamics.
A wallet related to the #EthereumFoundation deposited 2,500 $ETH($6.06M) to #Bitstamp 20 mins ago.
On Nov 17, 2015, the wallet received 51,251 $ETH($51.2K at that time, $124.5M currently) from the #EthereumFoundation.https://t.co/RV8HZrxgKH pic.twitter.com/EpcSD6c0RZ
— Lookonchain (@lookonchain) October 8, 2024
Speculation Rises Over Ethereum Foundation’s Wallet Activities
There is an interesting background on the wallet used in this transaction. Receiving a large contribution of 51,251 ETH from the Ethereum Foundation on November 17, 2015, it had value at the time of $51,200. Reflecting Ethereum’s explosive price increase over years, that identical ETH hoard has skyrocketed today to an amazing $124.5 million.
The Ethereum Foundation has not given a public justification for its activities, even with the volume of the recent 2,500 ETH transfer. This lack of openness allows one to speculate on the goals of the Foundation.
Given the Foundation’s support of the continuous growth of the Ethereum network, some market players think such transactions could point to sales to meet running expenses or liquidity needs.
The Ethereum Foundation has previously carried out similar transfers to exchanges, and last month there were sizable sales. The Foundation sold 300 ETH for roughly $707,328, for instance, and prior to that it conducted minor transactions selling about $1.51 million worth of ETH.
These steady sales imply that the Foundation may be funding operational expenses or development initiatives from its assets, which are necessary for the Ethereum network to keep growing continuously.
Beside that, the Ethereum network is about ready for more improvements. According to CNF, the adoption of EIP-7781 might shortly cause Ethereum’s performance to show a notable increase.
By reducing block time and improving data capacity, this proposal seeks to enable Ethereum transactions 50% faster, therefore providing consumers with a more affordable and effective experience.
Meanwhile, Ether (ETH) is trading at around $2,447.80 as of writing, a 1.00% rise over the last 24 hours.
