Ethereum Foundation Deploys $500M to Projects
The Ethereum Foundation disclosed that it deployed nearly $500 million to ecosystem projects between 2022 and 2023. According to its 2024 annual report, $497 million was allocated to support various projects, with the Foundation contributing $240.3 million, equating to 48.3% of the total funding.
Funding came not only from the Ethereum Foundation but also from MakerDAO (now rebranded as Sky), Gitcoin, Optimism, Aragon, Decentraland, Uniswap, MetaMask DAO, Starknet, Protocol Guild and other Ethereum-built ecosystems. This collective effort highlights significant support within the Ethereum community.
$22.2 Billion in Ecosystem Treasury
In addition to deployed funds, the Ethereum Foundation noted that the ecosystem is backed by over $22 billion in Treasury resources. These resources include assets held by various organizations, foundations, and decentralized autonomous organizations (DAOs).
Nevertheless, the Ethereum Foundation retains $970 million in its Treasury. The report clarified that these Treasury funds consist of liquid and vested assets.
The report explained that liquidating a significant portion of a project’s Treasury could drastically affect the token’s market value. Despite this challenge, the Foundation pointed out that these treasuries have a “depth of reserves,” and deploying a fraction would sufficiently support and expand the ecosystem for years.
Ethereum Foundation Incorporates New Conflict of Interest Policy
The Ethereum Foundation also highlighted introducing a conflict-of-interest policy to enhance transparency and maintain integrity. This policy requires Ethereum Foundation members’ disclosure for non-Ether investments exceeding $500,000.
The aim is to prevent any conflicts from influencing decision-making processes. If an investment poses a conflict, members involved will be excluded from related decisions.
Executive Director Aya Miyaguchi noted on X that this measure is intended to “strengthen the integrity” of the Foundation and uphold trust within the ecosystem.
Ethereum Eyes $3200 as ETF Inflows Rise
Meanwhile, the price of Ethereum (ETH) is poised for a breakout above $3,200, fueled by a surge in ETF inflows after Donald Trump’s re-election. Trump’s victory has significantly boosted crypto market sentiment, with analysts predicting strong performance for Bitcoin (BTC) and Ethereum.
On Nov. 6, Trump was declared the presidential election winner, leading to a noticeable shift in crypto market dynamics. Data from Farside Investors indicated that spot Ether ETFs saw net positive inflows of $52.3 million on the day of the election announcement, followed by $79.7 million on Nov. 7.
This influx marks renewed investor interest in Ethereum, causing an uptrend in its value. Notably, these funds have seen a combined $422.63 million outflow since inception, with the trading volume at $446.40 million.
A Potential Ethereum Breakout?
Bitfinex analysts noted that the increased buying pressure and ETF inflows will help Ethereum break its current trading range. Based on BTC’s market cap dominance, analysts anticipate ETH’s price to exceed $3,200 in the near term.
Open interest in Ethereum has also risen, signaling higher volatility. Analysts highlighted that this metric reached $1.3 million, a significant increase from $800k in August.
Current data showed that a substantial portion of this open interest is in short positions.
Staked ETH ETFs Could Drive Future ETH Price Growth
Trump’s re-election is expected to usher in crypto-friendly regulations in the US, which could lead to accelerated approval of staked Ether ETFs. Edward Wilson, an analyst at Nansen, pointed out that such a regulatory environment will speed up the approval process for staked ETH ETFs, enhancing Ethereum’s attractiveness to retail and institutional investors.
If a staked Ethereum ETF gains approval during the incoming administration, it could add significant momentum to Ethereum’s price, possibly pushing it beyond its previous all-time high of $4,800, set in November 2021.
Meanwhile, Bitget Research’s chief analyst Ryan Lee stated that Bitcoin is expected to reach $100,000 before 2024 ends, which would benefit Ether and other top assets. In February, BTC ETFs accounted for 75% of new investments when Bitcoin’s price surpassed $50,000, illustrating the strong influence of ETF inflows on the coin’s performance.
