Ethereum Foundation Converts 1,000 ETH to Stablecoins – Here’s Why
The Ethereum Foundation has introduced plans to promote 1,000 ETH, value roughly $4.5 million, as ETH’s worth climbs above $4,500 for the primary time since mid-September.
The sale, disclosed on October 4, will probably be executed utilizing CowSwap’s Time-Weighted Average Price (TWAP) function. This automated software spreads giant transactions over time to stop sudden market disruptions.
Ethereum Foundation’s seventeenth ETH Sale This Year Renews Market Debate
By utilizing TWAP, the Foundation goals to cut back worth volatility, decrease slippage, and safe extra balanced execution costs.
Institutional buyers and crypto treasuries typically depend on comparable methods to offload large holdings with out triggering sharp worth swings.
As a end result, the proceeds will probably be transformed into stablecoins to fund ongoing operations such as ecosystem research, developer grants, and group donations.
According to the Foundation, this sale aligns with its broader technique of managing its treasury extra effectively whereas leveraging DeFi instruments.
Meanwhile, in accordance to data from the Strategic ETH Reserve, this marks the Foundation’s seventeenth ETH sale in 2025. Its remaining stability now stands close to 222,720 ETH—value roughly $1 billion at present costs.
The frequent sales have raised issues amongst group members, who argue that such exercise can create bearish sentiment and weaken investor confidence.
While some critics have questioned the optics of repeated sales during bullish momentum, others view the transfer as a crucial step towards accountable treasury administration.
Crypto researcher Naly suggested that the Foundation might “highlight the power of DeFi” through the use of decentralized instruments to generate liquidity moderately than promoting tokens outright.
Naly proposed another: “Supply ETH on Aave, earn curiosity, borrow stablecoins, and fund operations utilizing DeFi-generated capital.”
Advocates say this methodology would enable the Foundation to preserve publicity to ETH’s potential upside whereas nonetheless accessing liquidity for bills.
Still, not all suggestions has been unfavorable.
Several group members have praised the Foundation’s transparency for asserting its gross sales publicly. According to them, this follow is unusual amongst giant crypto organizations.
As of press time, Ethereum trades round $4,500, up 12% from final week’s low close to $4,000, in accordance to BeInCrypto knowledge.
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