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The Ethereum Foundation (EF) published its highly anticipated 2024 report, offering a comprehensive overview of its financial health, investments, and future plans.
Here's a closer look at the numbers, what they mean for the crypto industry, and how the foundation is positioning Ethereum for long-term success.
Financial Activities and Investment Focus
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 Ethereum’s 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 Financial Reserves and Treasury Management
As of October 31, 2024, the Ethereum Foundation's financial reserves stand at $970.2 million. A majority of this, $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 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, talks about the EF's dedication to planting the seeds for Ethereum's resilience and collaborative growth. In her statement on X (formerly Twitter), Miyaguchi said:
"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. Through grants and partnerships with projects like Argot Collective, Geodework, L2BEAT, and 0xPARC, the Ethereum Foundation is aiming to help drive innovations that could shape the future of the network.
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.