The Ethereum Foundation supplies 10K ETH to Spark and Aave, doubling down on DeFi

Spot On Chain data has revealed that the Ethereum Foundation supplied 10,000 ETH each to Spark and Aave, valued at approximately $53.4 million. The foundation has supplied 30,800 ETH in total to Aave today, worth a little over $85 million, with 10,000 ETH going to Aave Prime and 20,800 ETH going to Aave Core.

Spot On Chain explained that the transfers were part of the foundation’s plans to engage more in decentralized finance. 

The Ethereum Foundation recently moved 50,000 ETH to its newly created DeFi multi-sig wallet, which is dedicated to engaging with DeFi applications. The foundation’s Hsiao-Wei Wang announced the wallet’s creation on January 20, adding that the 50K ETH transfer would happen as soon as the signing process was complete. The 3-to-5 multi-sig wallet is on Safe, which Wang confirmed was proven secure for future transactions. 

A Yahoo Finance report suggested that the foundation’s engagement in DeFi could help boost its treasury, which has declined by 39% since 2022. The Ethereum Foundation financial report from 2024 revealed that the treasury held a little over $970 million as of October last year, compared to the $1.6 billion it had in March 2022. 

The report also confirmed that the report’s release was part of the foundation’s plans to increase transparency around its financial holdings. According to the latest data from Arkham Intelligence, the treasury has dropped to a little over $655 million since October. 

Ethereum Foundation faces backlash for ETH dumps

[ATTENTION] The Ethereum Foundation sold 100 $ETH for 307,893 $DAI again after just 7 days!

So far, 300 $ETH has been sold for $981.2K at an average price of $3,271 in the first 27 days of 2025.

The $ETH price dropped by 7.33% today!

Follow @spotonchain and set alerts for the… https://t.co/dWJ0ys7wfw pic.twitter.com/7AOzVLsadO

— Spot On Chain (@spotonchain) January 27, 2025

The foundation has been facing backlash from the community for its decision to sell instead of staking ETH. Spot On Chain data revealed that the latest ETH sale was on January 27, when the foundation sold 100 ETH for 307,893 DAI. The sale was the foundation’s third of this year. The first was on January 8, when it sold 100 ETH for 329,463 DAI. The second sale of the year happened on January 20, when it sold 100 ETH for 336,475 DAI.

The data also revealed that the Ethereum Foundation sold 300 ETH this year at an average price of $3,271 and an overall value of $981,200. Spot On Chain also confirmed that the foundation sold 4,466 ETH at an average price of $2,823 and an overall value of $12.2 million. ETH’s price is still down over 45% from its 2021 all-time high of $4,878. 

The sales have sparked outrage among the Ethereum community, with many questioning the foundation’s decision. Ethereum core developer Eric Conner commented on the sales, saying that the foundation used the blockchain for dumping ETH. Conner also pointed out that staking in DeFi could sustain the foundation’s internal budget. 

Infinex’s founder, Kain Warrick, also called out Vitalik Buterin and the Ethereum Foundation as anti-DeFi. Warrick suggested that the foundation only “begrudgingly tolerated” DeFi despite the industry driving Ethereum’s dominance for the past 5 years. The Infinex founder further highlighted the frustration Buterin’s stand has sparked in the DeFi community.

Buterin begins Ethereum Foundation restructuring

We are indeed currently in the process of large changes to EF leadership structure, which has been ongoing for close to a year. Some of this has already been executed on and made public, and some is still in progress.

What we're trying to achieve is primarily the following…

— vitalik.eth (@VitalikButerin) January 18, 2025

Buterin recently defended the backlash the foundation received for ETH sales over staking, outlining regulatory concerns in the past that led to the selling over the staking decision. The Ethereum co-founder also insisted on the need for the platform’s stance as a neutral entity globally. Buterin tweeted on January 20 that part of the ecosystem’s goal is to remain independent without “aggressively lobbying regulators and powerful political figures” in the U.S. and globally. 

The Ethereum co-founder also added that the ecosystem would not chase after an “ideological / vibez pivot from feminized wef soyboy mentality to bronze age mindset.”

CryptoQuant’s founder and CEO, Ki Young Ju, supported Buterin’s statement, appreciating the co-founder’s focus on “creating value over making money.” Buterin has also notably stated that the other goals for the Ethereum ecosystem are to ensure the platform does not become an arena for vested interest or a highly centralized entity. 

The Ethereum Foundation is still planning to restructure its leadership to improve the performance of the non-profit. Buterin revealed that the foundation hoped to improve the level of technical experience within its leadership ranks, recruit new talent, increase privacy and decentralization, support developers, and more. The Ethereum co-founder further highlighted the foundation’s contribution toward improving its DeFi ecosystem.

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