TL;DR
- The Ethereum Foundation sold 300 ETH in January 2025. The price of ETH dropped more than 5% today, currently trading above $3,100.
- Despite the sales, the Foundation holds reserves of 269,175 ETH, valued at approximately $817 million, which allows it to continue operating solidly.
- In response to competition and criticism, the Foundation plans to allocate $165 million to its DeFi ecosystem and promises reforms to improve transparency and support for developers.
The Ethereum Foundation has continued with its ETH sales despite the recent market drop. In the early days of 2025, the Foundation sold a total of 300 ETH, equivalent to approximately $981,200. This adds to a series of transactions in which 100 ETH were sold in a single move, exerting additional pressure on the price of ETH.
Over the last 24 hours, the price of ETH has dropped more than 5%, and it is currently trading above $3,100. This decline should be framed within the high volatility the market is experiencing due to the impact of Deepseek in the AI industry.
Despite this setback, the Ethereum Foundation holds significant ETH reserves. According to data from Arkham Intelligence, the organization owns about 269,175 ETH, a sum valued at nearly $817 million. This provides a solid foundation for continuing its operations, even as it sells portions of its supply.
Ethereum Urgently Needs to Improve Its Ecosystem
The continuation of the sales has intensified the debate on the direction the Foundation should take. Some critics challenge the strategy, while others suggest that the Foundation must innovate and adjust its policies to remain competitive against other blockchains, like Solana. The rise in competition has placed enormous pressure on Ethereum to improve its services and quickly adapt to market demands.
Justin Sun, founder of Tron, suggests that Ethereum should focus on enhancing the user experience and fostering innovation on its platform. Sun also recommended that the Foundation refrain from selling more ETH and instead leverage its reserves to stabilize the ecosystem.
The Foundation’s Response
Furthermore, Paradigm, a leading cryptocurrency research and investment firm, has pointed out that Ethereum needs to accelerate its annual developments to stay ahead. In response to these challenges, the Foundation has announced it will allocate 50,000 ETH, approximately $165 million, to support its DeFi ecosystem.
Meanwhile, Vitalik Buterin, co-founder of Ethereum, has promised internal reforms to improve transparency and better support developers. However, he has rejected calls for the resignation of Executive Director Aya Miyaguchi and has spoken out against the campaigns targeting the Foundation
