The Ethereum Foundation announced its assets totaling $970.2 million as of October 31, 2024. This disclosure aligns with their strategy to prioritize cryptocurrency in their treasury.
Ethereum Foundation's Financial Strategy
The Ethereum Foundation holds $788.7 million in cryptocurrencies, with 99.45% in ether (ETH). These assets represent 0.26% of the total supply of ETH. Additionally, the foundation's treasury includes $181.5 million in non-crypto investments. The foundation stressed the importance of maintaining significant reserves to fund 'public goods' and to ensure resilience during potential multi-year market downturns. Given the cryptocurrency market volatility, they opt for a conservative approach, selling ETH to secure fiat reserves and ensure spending capacity during downturns.
Community Concerns
Recent treasury disclosure follows community concerns over unexplained large transactions and unexpected ETH sales without prior notice. In response, the foundation emphasized that such sales are crucial for its mission and capacity to support Ethereum's growth. Executive Director Aya Miyaguchi affirmed: 'We’re committed to nurturing Ethereum’s future and establishing resilience in the ecosystem, even if the full impact is realized years from now.'
Support for Ethereum Ecosystem
In 2023, the Ethereum Foundation committed $47.4 million to grants, significantly up from $28.6 million in 2022. Additionally, $34.7 million was allocated for Layer 1 infrastructure R&D. The Ethereum network showed steady growth, with active addresses rising to 13.7 million in October from 12.3 million in September, and transaction volume increasing to $108.6 billion.
The Ethereum Foundation's report underscores its strategic commitment to ecosystem development, sustaining core infrastructure, and resilience amid market shifts.
