ETH nears $3k as Ethereum Foundation bets on its ‘long term perspective’

ETH nears $3k as Ethereum Foundation bets on its ‘long term perspective’

In its 2024 financial report, the Ethereum Foundation reaffirmed its long-term commitment to ETH, revealing that 99% of its $788.7 million crypto holdings are in Ethereum. As of October 31, the foundation’s total assets were valued at approximately $970.2 million, which includes $181.5 million in non-crypto assets.

The Ethereum Foundation stated, “We choose to hold the majority of our treasury in ETH. The EF believes in Ethereum’s potential, and our ETH holdings represent that long-term perspective.” This reinforces the foundation’s trust in the future of Ethereum and its belief in ETH’s role in powering the decentralized internet.

The report also addressed the ETH sales made by the foundation, explaining the rationale behind it. The foundation noted that its decision to sell some ETH is in line with its efforts to fund “important public goods for the Ethereum ecosystem for years into the future.” The foundation emphasized that these sales are a part of its “conservative treasury management policy” to ensure long-term financial stability, even during market downturns. “This requires periodically selling ETH to ensure sufficient savings for future years, and programmatically increasing our fiat savings in bull markets to fund spending in bear markets,” the report stated.

In terms of 2023 expenditure, the foundation allocated 30.4% (around $32.1 million) to layer-1 research and development initiatives, with another 27.1% (around $28.6 million) directed towards supporting new institutions. This includes grants aimed at furthering the Ethereum ecosystem.

Ethereum’s performance has also been strong, with ETH rising 16.2% in the past week, outpacing Bitcoin’s 9.4% growth. As of the latest update, ETH is trading at $2,914, still 40% below its all-time high of $4,890.

While the Ethereum Foundation has periodically sold ETH, its focus remains on the long-term growth and sustainability of the Ethereum ecosystem, maintaining its dedication to building public goods and ensuring the blockchain’s success for years to come.

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