The Ethereum Foundation (EF) recently revealed that it holds $970.2 million in total assets, with $788.7 million of that in cryptocurrency, mainly Ether (ETH), the second-largest cryptocurrency globally. This decision to hold most of its assets in Ether reflects the foundation’s strong belief in Ethereum’s future.
But as the foundation’s wealth grows, so does the scrutiny. Recent revelations about its trading activities have sparked debates within the crypto community, raising questions about transparency and governance. Let’s explore, shall we?
Why Ethereum Holds Mostly Ether
As of October 31, 2024, the Ethereum Foundation reported that 99.45% of its crypto holdings are in Ether (ETH), which makes up about 0.26% of the total Ether supply. This choice shows the foundation’s strong belief in Ethereum’s potential for long-term success.
Recently, some members of the crypto community raised concerns about occasional sales of Ether without prior notice. This has led to calls for more transparency from the foundation about its actions.
More Transparency Is Key
In response to these concerns, the Ethereum Foundation has promised to increase transparency around its transactions. The foundation aims to build trust by offering clearer insights into its decision-making and financial activities, while continuing its strong support for Ethereum.
Ethereum Foundation’s Treasury Strategy
Besides its crypto assets, the Ethereum Foundation also holds $181.5 million in non-crypto investments. This mix is part of the foundation’s cautious approach to managing its treasury, ensuring that it has enough resources even in tough market conditions.
To keep its treasury stable, the Ethereum Foundation follows a conservative policy. This includes periodically selling Ether to raise fiat currency, especially during strong market conditions, ensuring the foundation can fund its operations even during weaker times.
Key Spending Areas Revealed
The foundation’s largest spending went toward grants for new institutions supporting Ethereum, with $47.4 million dedicated to this cause. Another $34.7 million was spent on Layer 1 research and development to further improve the Ethereum network.
Ethereum’s Continued Growth
In addition to its financial success, Ethereum has experienced positive growth in recent months. The number of active addresses on the Ethereum network reached 13.7 million in October, a notable increase from the previous month’s 12.3 million.
However, Ethereum’s on-chain volume has also surged, reaching $108.6 billion in October, up from $90.9 billion in September.
After Trump’s recent presidential victory, the crypto market has experienced a major boost, with Bitcoin reaching a new all-time high of $76,943. This surge has also influenced other cryptocurrencies, especially Ethereum, which saw its price climb to $2,945, marking an 18% increase over the past seven days.
This was an interesting glimpse into the financial powerhouse behind one of the world’s most influential cryptocurrencies. Stay tuned to Coinpedia for more.
