Ethereum Foundation Dumps $13 Million ETH Holdings

The Ethereum Foundation’s $13.3 million sale of Ethereum sparked discussions on its market impact although ETH remains bullish.

Investors and market analysts alike have taken notice of a large transaction that the Ethereum Foundation carried out. The transaction involved the sale of Ethereum (ETH) for $13.3 million.

Ethereum Foundation Role

The Ethereum Foundation action, well-known for its essential role in the cryptocurrency industry, has sparked discussions about its potential impact on Ethereum’s market position.

Ethereum has shown resilience with a bullish trend, maintaining its price at $3580.74 despite the recent sale transaction. As stated by CoinGecko, this is a 14.6% gain over the previous week, with a solid market capitalization of $420 billion and holding a 17.8% dominance in the cryptocurrency market.

Additionally, Ethereum has a market value of $420 billion. Not only has the top cryptocurrency, Bitcoin (BTC), had significant increases, but it has also increased by more than 28 percent in the past week and it is getting close to reaching its all-time high of $69,000 in November 2021.

Upcoming Ethereum Network Update

The price of Bitcoin hovering around the $67,000 mark highlights a period of overall expansion in the cryptocurrency market. While the Ethereum Foundation is preparing for the Dencun upgrade, which is a combination of the Cancun and Deneb updates, the cryptocurrency community is keeping a close eye on the potential consequences that this update could have on Ethereum’s scalability, efficiency, and security.

This update, projected to take place on March 13, aims to significantly reduce layer-2 transaction fees. The Ethereum Foundation has successfully upgraded test networks, demonstrating readiness to activate the mainnet.

As in the previous month, there were 1.8 million new users that joined the Ethereum network, bringing the total number of ETH holders to 115.5 million addresses.

This suggests that Ethereum’s user base is expanding. This growth contrasts with Bitcoin’s minor reduction in wallet addresses, which provides further evidence of Ethereum’s increasing prominence in the market.

Furthermore, the decrease in Ethereum’s exchange supply by $2.3 billion creates a favorable environment for the price trajectory of the cryptocurrency, which can potentially drive it closer to the $4,000 mark in March 2024.

The United States Securities and Exchange Commission (SEC) is currently reviewing applications for spot Ethereum exchange-traded funds (ETFs) scheduled for later this month, drawing close attention from the cryptocurrency industry.

Decisions regarding the future of financial products based on Ethereum are anticipated to be delayed until at least May during this crucial meeting.

The Securities and Exchange Commission (SEC) will significantly influence the legal environment for cryptocurrency exchange-traded funds (ETFs) through its handling of applications from prominent companies such as VanEck, BlackRock, Franklin Templeton, Grayscale, and Invesco Galaxy.

The licensing of spot Bitcoin exchange-traded funds (ETFs) in January marked a crucial point in the wider acceptance of cryptocurrencies as legal investment vehicles.

This permission came after Grayscale filed a landmark case against the Securities and Exchange Commission (SEC). Experts predict that judgments on spot Ethereum exchange-traded funds (ETFs) will further influence market dynamics and regulatory posture towards cryptocurrencies in the United States.

This could have potential ramifications for Ethereum’s market performance and investor sentiment.