The Ethereum Foundation recently swapped $27 million in ETH on the decentralized exchange Uniswap, shocking the cryptocurrency market and causing Ethereum’s (ETH) price to fall and it’s market capitalization to suffer.
The Ethereum Foundation’s substantial action has drawn attention from the cryptocurrency industry and spurred discussions about its potential effects on the market. Due to this transaction, Ethereum’s market capitalization, which is also the second-largest cryptocurrency by market capitalization, decreased and now stands at roughly $191.09 billion.
The price of ETH itself bore the brunt of this swap’s effects. Following the disclosure of the Ethereum Foundation’s massive swap, the cost of ETH fell by 2% on Monday, trading at $1,589.52. Investors and dealers in Ethereum expressed concerns over the price drop, which sparked arguments regarding the Ethereum Foundation’s action and its ramifications for the state of the market.
Although the Ethereum Foundation has not revealed explicit details regarding the reasons behind the $27 million swap, such sizable transactions by significant players in the cryptocurrency ecosystem frequently spark debate and rumors among market participants.
Cryptocurrency Community Gets Involved, Trading Volume Surge By 59.89%
Market watchers and analysts are keenly analyzing the event to determine how this swap will affect the price of Ethereum and market dynamics over the long run. A recent article on the Daily Coin platform clearly stated that large transactions can significantly affect price movements and investor sentiment in the volatile bitcoin market.
Information from Forbes Advisor says that the cryptocurrency industry is slowly shifting its focus to the conventional financial market, which is evident in how the yield from the United States Treasury bonds has witnessed a major increase. This transaction by the Ethereum Foundation coincided with the increase in the trading volume, which increased by 59.89% in the past 24 hours, hitting $4.71 billion.
A recent observation from the Ethereum community shows that some have indicated that the exchange may be connected to the continuing development and operational activities of the Ethereum Foundation. In contrast, others have argued that it may be a part of a larger scheme.
ETH Developers Hints On The Merge, Market Watchers Keep Watch
In other news, ETH developers have meticulously unveiled the upgrade after the latest upgrade from “The Merge.” Explaining The Merge, Dailycoin’s Okoya David said that it is the most impressive milestone the engineers have achieved in making sure that the network makes it from the Proof-of-Work (PoW) to Proof-of-Stake (PoS), then to Shapella, which at the end releases the staked ETH withdrawals.
The current scheduled upgrade on the Ethereum network is tagged the Dencun. The upgrade is also intended to solve the scalability issues, which are believed to have affected the network for too long. The upgrade is expected to go live anytime this year.
Still, a recent developer update announced that it may take longer than anticipated due to some undisclosed delay. The $27 million swap on Uniswap by the Ethereum Foundation has had a measurable effect on the price and market capitalization of Ethereum (ETH).
The cryptocurrency community is closely watching the event to determine how this transaction will affect the market dynamics and investor sentiment for Ethereum. Meanwhile, David added that the market participants will watch for new events and reactions in the coming days as the cryptocurrency market continues to be volatile at this time.
