As the ETH Foundation, whales, and hackers depart, Ethereum faces a $500 million sell-off.
Concerns over market stability and liquidity have been raised by the $500 million worth of ETH that has been exchanged over the last two weeks by the Ethereum Foundation, whale investors, hackers, and other significant actors.
On-chain data indicates that whale wallets sold $242.34 million in ETH to centralized exchanges, while the Ethereum Foundation sold roughly 6,194 ETH, or $28.36 million.
These transactions, which took place amid a time of increased volatility, raise concerns about the causes of such a huge liquidity event and point to a significant change in market dynamics. Alongside the sell-off, Ethereum’s net taker volume fell precipitously, reaching -$418.8 million on August 6, 2025.
The Ethereum ETF flows also displayed conflicting indications, with a $73 million turnaround after initial outflows. A significant holder’s purposeful decision to sell assets during uncertain times or as part of portfolio repositioning is indicated by this unusually high level of negative volume. Despite the selling pressure, staking inflows have increased, indicating that some investors are refocusing their attention from speculative trading to long-term value accumulation.
This trend points to a more widespread move away from speculation and toward yield-generating tactics in Ethereum holdings. Nonetheless, the Ethereum Foundation’s sell-off’s timing and magnitude have drawn notice, and some analysts are raising concerns about how it might affect the network’s governance and market perception. Given how swiftly the stolen ETH was liquidated, which increased the downward price pressure, hackers might have also been involved.
It becomes challenging to identify whether the sell-off is motivated by risk management, hostile action, or strategic positioning when illicit actors are involved. The sales were carried out to preserve impartiality and lessen exposure to risks associated with staking, according to the Ethereum Foundation, which has defended its activities.
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