- The Ethereum Foundation holds $970.2M in assets, with 99.45% in ETH, representing 0.26% of the total Ether supply.
- EF faced community concerns over unannounced ETH sales, pledging improved transparency in financial disclosures.
- EF allocated $47.4M to ecosystem grants and $34.7M to Layer 1 R&D in 2023, boosting network growth and research efforts.
The Ethereum Foundation (EF) disclosed a detailed report of its financial standing, showing $970.2 million in total assets. This substantial figure includes $788.7 million in cryptocurrency, primarily in Ether (ETH), which remains the second-largest cryptocurrency in the world.
Consequently, the foundation’s choice to hold the majority of its assets in Ether highlights its confidence in Ethereum’s long-term prospects. The recent report confirmed that as of October 31, 2024, 99.45% of EF's cryptocurrency holdings were in Ether. This significant portion equates to about 0.26% of the total circulating supply of ETH.
Commitment to Transparency Amid Concerns
However, despite the clear support for Ethereum, the foundation has faced some scrutiny. Some members of the crypto community have raised concerns over sporadic Ether sales conducted without prior public notice. These observations prompted calls for increased transparency in EF's financial decisions.
In response, the Ethereum Foundation assured the community of its commitment to enhance transparency. The foundation stated that it would work on more detailed disclosures regarding its transactions and financial strategies.
More so, the EF also holds $181.5 million in non-crypto investments, showcasing a diversified approach. This financial strategy aims to ensure resource stability even during volatile market periods. The mix of cryptocurrency and non-crypto assets supports the foundation’s cautious treasury approach, which aims to secure sufficient funding for future projects and operations.
Strategic Sales During Market Strength
Furthermore, the Ethereum Foundation employs a treasury management policy that involves periodic sales of Ether. This approach serves a practical purpose. The foundation raises fiat currency to fund operations and research, especially during periods when the market is performing well.
Subsequently, this proactive method ensures the foundation maintains operational stability even during economic downturns. By doing so, the EF can continue to support the Ethereum network without facing significant funding challenges during weaker market phases.
Growing Investment in Research and Development
In 2023, the Ethereum Foundation significantly focused its financial efforts on growth and development. The foundation allocated $47.4 million toward grants to institutions that support Ethereum’s ecosystem.
Additionally, it dedicated $34.7 million to advancing Layer 1 research and development. These strategic investments align with the foundation’s commitment to fostering a more robust and innovative Ethereum network.
Recently, Ethereum has seen an increase in its network activity. The number of active addresses rose to 13.7 million in October, compared to 12.3 million in September. This growth indicates stronger user engagement within the network.
Moreover, on-chain transaction volume also showed a notable increase, climbing to $108.6 billion in October from $90.9 billion in September. These figures reflect Ethereum’s growing influence in the broader crypto market.
Besides, the recent rise in the value of cryptocurrencies also impacted Ethereum. Following the outcome of the latest U.S. presidential election, the crypto market experienced a significant boost. Bitcoin reached an all-time high of $76,943. Ethereum also benefited, with its price increasing by 18% in the last seven days, reaching $2,945.
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