Ethereum Foundation Transfers $654 Million in ETH Amid Speculation Over Developer Compensation

The Ethereum Foundation has transferred approximately $654 million worth of ETH to a wallet commonly linked to token sales, sparking intense community speculation about its intentions. Such a large-scale move could influence the cryptocurrency market, especially if liquidation occurs soon.

According to Arkham Intelligence, known for uncovering major on-chain movements, this transfer marks one of the Foundation’s most significant in recent history. In the past month, the organization sold smaller ETH amounts—each under $10 million—mainly to support independent DeFi initiatives. However, today’s transaction dwarfs previous ones, prompting questions about whether the Foundation is preparing to sell a portion of its reserves.

Last month’s ETH sale, reportedly used to fund research and development, was 16 times smaller than the latest transfer. Given current challenges surrounding ETH’s price performance and blockchain infrastructure, some investors worry that a large token sale could create additional downward pressure on the market. For now, though, ETH prices remain relatively stable.

Speculation has also turned toward possible internal motives behind the move. The recent resignation of veteran developer Péter Szilágyi, who criticized the Foundation for underpaying core contributors, reignited discussions about fair compensation. Szilágyi revealed that he earned only $625,000 before taxes over six years—despite Ethereum’s meteoric rise to a $450 billion market cap.

Following the backlash, a Co-Executive Director at the Ethereum Foundation acknowledged these concerns, admitting that many early builders were underpaid for their invaluable work. Some analysts now believe the new transfer could be intended to reward long-time developers, though no official confirmation has been provided.

Whether this massive transaction signals a market sale or a long-overdue payout to Ethereum’s core team, the crypto community will be watching closely for its potential impact on ETH’s future.