The Ethereum Foundation has come under fire for its persistent selling of ETH, while an awkward attempt by a team member to defend the move has sparked significant backlash—making the situation worse.
Ethereum's Rocky Start in 2025
Ethereum's journey in 2025 has been challenging. As Bitcoin and other altcoins hit all-time highs, Ethereum struggles to keep pace. ETH started 2024 at $2,350, surged to $4,000 by December, then dipped again. It remains far from its 2021 peak of $4,878, leaving many investors unimpressed.
The core issue? Ethereum hasn't captured retail hype like its competitors. Networks like Solana dominate headlines with viral products—crypto smartphones, meme coins, and celebrity endorsements—despite technical struggles. Meanwhile, Ethereum focuses on solving fundamental problems like scalability through Layer-2 solutions (e.g., Coinbase's Base). Yet, these efforts seem overlooked by mainstream investors.
Poorly Timed ETH Sales Draw Criticism
The Ethereum Foundation, a nonprofit supporting Ethereum's ecosystem, faces growing discontent over its frequent ETH sell-offs to cover operational costs. One such sale occurred on January 20, when the foundation swapped 100 ETH for 336,500 DAI. According to SpotOnChain, the foundation sold over $670,000 worth of ETH in less than three weeks.
The timing couldn’t be worse. The community was already riled up by controversial remarks from Josh Stark, an Ethereum figure who defended the sell-offs:
"The EF actively uses Ethereum—like converting ETH to stablecoins or paying teams/grant recipients. Our events (e.g., Devcon) use on-chain payments and IDs."
— Josh Stark (@0xstark)
This justification backfired when another sale followed shortly after. Critics blasted the foundation’s priorities:
- @WazzCrypto: "Using Ethereum just to dump ETH? Is this really your top use case?"
- @VelvetMilkman: "This isn’t how ‘using the chain’ works for most people. Your sole use case is selling ETH. Embarrassing."
👉 Why ETH's scalability matters for long-term growth
Community Outrage Escalates
The foundation’s decision to proceed with another 100 ETH sale intensified frustrations. User @trading_axe didn’t hold back:
"Do you really need $300K this urgently? As the Ethereum Foundation, why publicly dump ETH while the world watches? Brainless move."
Staking as an Alternative?
Amid the turmoil, Ethereum co-founder Vitalik Buterin hinted at potential changes. He revealed the foundation explored staking ETH instead of selling, citing reduced regulatory concerns but acknowledging risks around network forks.
"We’ve been exploring ways to minimize taking sides in contentious hard forks."
— Vitalik Buterin (@VitalikButerin)
👉 How staking could reshape Ethereum's future
Trust Crisis and Road Ahead
Ethereum’s focus on scalability hasn’t resonated with retail investors, and the foundation’s sell-offs exacerbate the disconnect. Competitors race ahead with flashy narratives, while Ethereum’s community questions its direction. Regaining trust will demand transparency and strategic shifts.
FAQ
Q: Why is the Ethereum Foundation selling ETH?
A: To cover operational costs, but frequent sales have angered investors who see it as undermining ETH’s value.
Q: How does Ethereum’s performance compare to Solana?
A: Solana leverages retail hype (e.g., meme coins), while Ethereum prioritizes tech upgrades—yet struggles to attract similar attention.
Q: What’s Vitalik Buterin’s stance on ETH staking?
A: He acknowledges staking could reduce sell-offs but highlights concerns over regulatory uncertainty and network forks.
Q: Can Layer-2 solutions boost Ethereum’s appeal?
A: They address scalability, but mainstream adoption requires clearer retail-friendly narratives.
Q: What’s next for Ethereum?
A: The foundation must balance financial sustainability with community trust—potentially pivoting to staking or reducing sell-offs.
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