The cryptocurrency market witnessed a notable divergence between Ethereum and Bitcoin on October 31, as Ethereum failed to follow Bitcoin’s early rally, trading sideways around the $2,660 mark. This underperformance came amid fresh on-chain data revealing that the Ethereum Foundation sold 100 ETH—worth approximately $270,800—for DAI stablecoins, sparking criticism across the crypto community.
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Ethereum Foundation’s Recent ETH Sale Raises Eyebrows
Renowned Chinese blockchain analyst Yujin (known online as “Ethereum Sleeps”) reported that the Ethereum Foundation executed a sale of 100 ETH at $2,708 per coin, converting the proceeds into 270,800 DAI. The transaction originated from wallet address 0xd77...1f4, an account historically used for frequent small-scale ETH disposals by the foundation.
According to Yujin’s analysis, the stablecoins were subsequently transferred to the Ethereum Foundation’s grant disbursement address (0x9ee...13d), suggesting the funds may be allocated toward ecosystem development, research grants, or operational expenses.
Despite the relatively modest size of the transaction, the timing has drawn scrutiny. Coming just one week after a previous sale, this move is being interpreted by many in the crypto space as “selling the top” or “dumping on strength”—a strategy often criticized when executed by central entities like foundations or early project insiders.
Notably, the Ethereum Foundation has not issued any public statement regarding the transaction through its official social media channels, leaving room for speculation and concern among retail investors.
Growing Market Divergence Between ETH and BTC
One of the most significant narratives in 2025’s crypto landscape is the widening performance gap between Ethereum and Bitcoin. While Bitcoin continues to strengthen—approaching key psychological and historical resistance levels—Ethereum has lagged behind.
Data shows that ETH/BTC exchange rates have declined by over 30% in 2025 alone. Over the past year, Ethereum has underperformed Bitcoin by more than 28%. Even against traditional safe-haven assets like gold, Ethereum has seen depreciation in relative value.
Bitcoin’s resilience stems from increasing institutional adoption, regulatory clarity in certain jurisdictions, and growing interest in spot ETFs. In contrast, Ethereum faces mounting pressure from competitive Layer-1 (L1) blockchains and questions about its post-upgrade utility and revenue generation model.
To reclaim its all-time high, Ethereum would need a staggering 45% price surge from current levels—a tall order given current market dynamics and sentiment.
Rising Competition in the Smart Contract Arena
The smart contract platform space has become increasingly crowded. With numerous Layer-1 and Layer-2 solutions offering faster speeds, lower fees, and improved scalability, Ethereum’s dominance is being challenged like never before.
Among its most formidable rivals is Solana (SOL), which has emerged as a major contender. Recently, U.S.-based asset manager Canary Capital filed for a Solana spot ETF—making it the third company to do so. If approved by the SEC, this ETF would allow traditional investors to gain exposure to SOL without holding the underlying cryptocurrency directly.
Solana currently ranks as the fifth-largest digital asset by market capitalization, with a valuation exceeding $82 billion. Over the past year, SOL has surged over 400%, trading near $175. Its blockchain supports decentralized applications (dApps), DeFi protocols, NFTs, and meme coins—offering performance advantages over Ethereum in terms of speed and cost.
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Community Reaction: Calls for Transparency
Following the news of the Ethereum Foundation’s sale, social media platforms lit up with criticism. Many users expressed frustration over what they perceive as a lack of transparency and alignment with long-term holders.
Some community members directed their concerns toward Vitalik Buterin, Ethereum’s co-founder, urging him to clarify whether these sales reflect broader funding strategies or short-term liquidity needs.
While foundation-led token sales are not inherently malicious—especially when proceeds fund ecosystem growth—they can damage trust if poorly communicated. In a space built on decentralization and transparency, perceived centralized control over supply distribution remains a sensitive issue.
Why This Matters for Investor Confidence
Trust is paramount in crypto markets. When core project entities engage in token disposal during periods of volatility or stagnation, it can signal uncertainty or internal concerns about future valuations.
Although 100 ETH is a small fraction of the total supply, the symbolic weight of such actions cannot be ignored. For retail investors who view Ethereum as a long-term bet on Web3 and decentralized infrastructure, these moves may raise doubts about commitment and roadmap execution.
Core Keywords Driving Market Discourse
This event touches on several key themes dominating current crypto discussions:
- Ethereum Foundation
- ETH price analysis
- Bitcoin vs Ethereum
- Cryptocurrency market trends
- Blockchain competition
- On-chain analytics
- Stablecoin transactions
- Crypto investor sentiment
These keywords reflect both technical developments and broader macro-level shifts influencing capital flows and user behavior across digital asset platforms.
Frequently Asked Questions (FAQ)
Why did the Ethereum Foundation sell ETH?
The Ethereum Foundation likely sold ETH to raise stablecoins (DAI) for funding ecosystem initiatives, including developer grants, research programs, or operational costs. Such sales are part of routine treasury management but require transparent communication to maintain trust.
Does selling ETH hurt the price?
While any large sale can create short-term downward pressure, especially in illiquid markets, the impact depends on context. In this case, 100 ETH is relatively small. However, perception matters—community backlash can amplify negative sentiment even if the financial effect is minimal.
Is Ethereum losing ground to competitors?
Yes, in certain metrics. Blockchains like Solana, Avalanche, and Arbitrum offer faster transactions and lower fees, attracting developers and users. Ethereum maintains strong network effects and security but must continue innovating through upgrades like EIP-4844 and future scaling solutions.
Could an ETF boost Solana more than Ethereum?
A spot Solana ETF could significantly accelerate institutional adoption of SOL, similar to how Bitcoin ETFs boosted BTC visibility. Ethereum already has futures-based ETFs in the U.S., but approval of a spot ETH ETF remains pending—putting SOL in a potential first-mover position among altcoins.
Should I worry about foundation-led token sales?
Not necessarily. Many blockchain foundations manage treasuries actively to ensure financial sustainability. The key factors are transparency, frequency, volume, and how funds are used. Regular reporting and clear communication help mitigate concerns.
What does this mean for ETH/BTC long-term?
The ETH/BTC pair remains in a downtrend since 2024. Reversing this trend will require renewed innovation momentum, increased usage of Layer-2s, stronger yield opportunities, and potentially regulatory tailwinds favoring Ethereum-based applications.
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Looking Ahead: Can Ethereum Regain Momentum?
As Bitcoin strengthens its position as digital gold, Ethereum must redefine its narrative beyond being “the world computer.” The path forward includes enhancing scalability through rollups, improving user experience, expanding real-world asset tokenization, and fostering sustainable developer economies.
Meanwhile, increased competition means no platform can rest on past achievements. For Ethereum to reclaim leadership in smart contract innovation, it must combine technical excellence with stronger community engagement and transparent governance practices.
The recent sale serves as a reminder: in decentralized ecosystems, perception is as important as protocol design. Moving forward, proactive communication from core teams will be just as critical as code updates in maintaining investor confidence and market relevance.