Ethereum Foundation Member Explains $100M Annual Budget and ETH Sell-Off Strategy

News of the Ethereum Foundation depositing 35,000 ETH into crypto exchange, Kraken on Friday took the market by storm with community members seeking an explanation. However, Ethereum Foundation member Aya Miyaguchi cleared the air stating that the recent ETH movement was part of their treasury management activities.

News about the Ethereum Foundation depositing 35,000 ETH into Kraken on Friday had the community abuzz, seeking an explanation for the move. However, Ethereum Foundation member Aya Miyaguchi quickly clarified that the recent ETH movement was part of their treasury management activities.

The Ethereum Foundation operates with an annual budget of about $100 million, which is mainly allocated towards grants and salaries, and some of the recipients can only accept fiat currencies, hence the need for these treasury activities, as stated by Aya Miyaguchi.

She added that this year, due to regulatory complexities, the Foundation faced extended advisories against conducting treasury activities, which led to a delay in disclosing their plans in advance.

However, she clarified that the recent transaction of 35,000 ETH is not part of the sale, adding that the Ethereum Foundation’s strategy involves planned and gradual sales moving forward.

This is part of our treasury management activities. EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some of the recipients are only able to accept in fiat. This year, there was a long period of time when we were advised not to do any…

As a Result, despite this move from the Ethereum Foundation, there was no major sell-off pressure on the ETH price. Instead, the Ethereum price has been enjoying a strong rally to $2,750 fueled by Jerome Powell’s clear hint on the Fed rate cuts coming next month in September.

Popular technical analyst Benjamin Cowen shared a chart stating that the ETH price still continues to trade under its 20-week simple moving average (SMA), while Bitcoin (BTC) and altcoins have already reached their bull market support bands.

He added that the ETH price might close this gap by the time the Federal Reserve cuts rates in a few weeks, potentially mirroring the patterns seen in 2016 and 2019 when ETH rallied around September 19-20.

#ETH is well below its 20W SMA while #BTC and #ALTs have already reached their bull market support band. Seems like ETH could close this gap by the time the Fed cuts rates in a few weeks, especially if this repeats either 2016 or 2019 where ETH rallied into Sep 19-20. pic.twitter.com/HcB9sqi5RP

Vitalik Buterin’s Focus On Layer 1 Robustness

In one of his recent tweets, Vitalik Butin praised the resilience of Ethereum’s Layer-1 network. Citing data from Supermajority, Buterin showed that no single execution client holds more than two-thirds market share.

No execution client has more than 2/3 market share, according to https://t.co/cQWI9dK1MKGreat news for the robustness of the Ethereum L1. pic.twitter.com/B6thOa65c9

Earlier this week, Buterin also highlighted several other milestones achieved by the Ethereum network, shrugging off concerns regarding the weakness in the Ethereum ecosystem.

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