Ever wondered why Ethereum (ETH), the backbone of so many meme coins and DeFi projects, just can't seem to smash through its all-time high? A recent thread from @StarPlatinumSOL on X dives deep into this, pointing fingers at the Ethereum Foundation's own selling activities. Let's break it down in simple terms and see what it means for the meme token world.

The Big Reveal: Foundation's Selling Spree

According to the thread, between April and October 2025, the Ethereum Foundation offloaded around 36,000 ETH, valued at roughly $65-72 million. This isn't some shady dump; it's part of a structured treasury policy rolled out in June 2025. The policy lets them liquidate up to 15% of their holdings each year to cover operations, research and development (R&D), and grants that keep the ecosystem buzzing.

Most of these sales happened through CoW Swap's TWAP feature. TWAP stands for Time-Weighted Average Price—it's a smart way to sell large amounts of crypto gradually over hours, reducing market impact and protecting against Maximal Extractable Value (MEV), which is basically front-running by bots.

One example highlighted is a tweet from the Foundation itself on March 10, 2025, announcing the conversion of 1,000 ETH to stablecoins using this method. It's all about funding ongoing work in DeFi while showcasing the tech's power.

Key Wallets in the Spotlight

The thread spotlights several wallets tied to the Foundation:

• 0x9fc3dc011b461664c835f2527fffb1169b3c213e: This is a main multisig wallet (requiring multiple signatures for security) used for DeFi activities on platforms like Aave and Compound. It received 50,000 ETH in January 2025 and now holds about 200,000-220,000 ETH.

• 0xf39d30fa570db7940e5b3a3e42694665a1449e4b: Linked to direct sales and CoW Swap trades, it sold 7,294 ETH (around $33.2 million) in August 2025.

• 0xe481a22056bd2adfbf9d723d162c471f6125328c: An older wallet that moved 92,500 ETH on July 25, 2025.

Current Holdings and Total Value

As of now, the Foundation's portfolio includes:

• 189,400 ETH (about $871 million)
• 20,800 aWETH (wrapped ETH in Aave, worth ~$95.8 million)
• 7.7 million DAI (a stablecoin) plus 214 WETH

That puts their total holdings at around $943-961 million. Impressive, right? But the thread argues this creates consistent sell pressure, especially during rallies, making it tough for ETH to break new highs.

What This Means for Meme Tokens

At Meme Insider, we're all about those viral meme coins that thrive on hype and community. Many popular ones, like PEPE or SHIB, are built on Ethereum. If ETH's price is under constant pressure from internal sales, it could dampen the overall market sentiment. Slower ETH growth might mean less gas for meme coin pumps, as higher fees and volatility scare off retail traders.

On the flip side, this structured selling funds grants and R&D that could lead to better scaling solutions, like layer-2 networks, making Ethereum cheaper and faster for meme launches. It's a double-edged sword—short-term pain for long-term gain.

If you're into Solana-based memes (hint: the thread's author has "SOL" in their handle), this might highlight why SOL has been outperforming ETH in speed and cost, attracting more meme activity. Check out our other articles on Solana memes for more insights.

Community Reactions

The thread sparked debates in the replies. Some users argue that $70 million in sales is peanuts compared to ETH's $550 billion market cap and daily trading volumes. Others see it as the Foundation indirectly paying itself by converting to stables instead of granting ETH directly. One reply even shouts "SOL >>> ETH," showing the ongoing chain wars.

For the full discussion, head over to the original thread on X.

In the end, while the Foundation's moves are transparent and aimed at sustainability, they do add a layer of sell pressure. If you're trading meme tokens on ETH, keep an eye on these wallet activities—they could signal upcoming market moves. Stay tuned to Meme Insider for more breakdowns on how big-chain drama affects your favorite memes!