The Ethereum Foundation has released its highly anticipated 2024 report, outlining its financial health, investments, and future plans.
Financial Activities and Investments
In 2023, the Ethereum Foundation's total expenditures reached $134.9 million, marking an increase from the $105.4 million spent in 2022. The primary investment categories included research and development for Layer 1 (30.4%), community development (18.5%), and internal operations (36.2%). Notably, in 2023, the EF allocated 35.2% of its funds towards new institutions, investing $47.4 million to help strengthen the broader Ethereum ecosystem.
Ethereum's Reserves and Treasury Management
As of October 31, 2024, the Ethereum Foundation's financial reserves stand at $970.2 million. Of this, $788.7 million (81.3%) is held in crypto assets, primarily in Ether (ETH). The remaining $181.5 million is held in non-crypto investments and assets, ensuring a diversified financial portfolio. A key takeaway from the report is the EF’s “conservative treasury management policy,” designed to safeguard the foundation’s resources even during a prolonged market downturn. The EF has periodically sold ETH to maintain savings for future years, emphasizing the need to increase fiat savings during bull markets to balance spending in bear markets. Aya Miyaguchi, the foundation’s executive director, remarked, "$CITE_W_A: We’re more committed than ever to planting seeds that may only mature years down the line, ensuring Ethereum’s resilience and collaborative growth." This long-term thinking is reflected in the foundation’s investments in community development, new institutions, and its ongoing support for projects that advance Ethereum’s Layer 2 scaling solutions and core infrastructure.
ETH's Market Performance
Ethereum’s market performance has 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 report from the Ethereum Foundation provides an insightful look into its financial state and strategic focus, highlighting its commitment to long-term growth.
