The Ethereum Foundation (EF) has released its much-anticipated 2024 report, offering a comprehensive overview of its financial health, investments, and future plans.
Financial Activities and Investment Focus
In 2023, the Ethereum Foundation's total expenditures reached $134.9 million, up from $105.4 million in 2022. Major investment categories included research and development for Ethereum’s Layer 1 (30.4%), community development (18.5%), and internal operations (36.2%).
Notably, 35.2% of the EF's funds were allocated to new institutions, investing $47.4 million to strengthen the broader Ethereum ecosystem.
Ethereum's Financial Reserves and Treasury Management
As of October 31, 2024, the Ethereum Foundation's financial reserves stand at $970.2 million. A majority, $788.7 million (81.3%), is held in crypto assets, primarily in Ether (ETH), which represents 0.26% of the total ETH supply. The remaining $181.5 million is held in non-crypto investments and assets, ensuring a diversified financial portfolio.
A key aspect is the EF’s 'conservative treasury management policy,' designed to safeguard the foundation’s resources during prolonged market downturns.
The EF has periodically sold ETH to maintain savings, emphasizing the need to increase fiat savings during bull markets to balance spending in bear markets.
ETH’s Market Performance
Ethereum's market performance has also been impressive, with the asset posting a 16% gain over the past week, outpacing Bitcoin’s 9% increase.
At the time of writing, ETH is trading at $2,918, down 40% from its all-time high of $4,890.
The Ethereum Foundation's report highlights its commitment to Ethereum's long-term development through investments in research, community building, and support for new initiatives. By maintaining substantial financial reserves and supporting innovative projects, the foundation is strengthening Ethereum's resilience and growth.
