Ethereum Foundation Wallet Shrinks to $650M as Market Shifts

• The Ethereum Foundation treasury currently holds $650 million in the main wallet.
• Ethereum has plunged by 5%, trading at $2,260.

The non-profit organization of the Ethereum blockchain, Ethereum Foundation, will release an updated financial report, as per the official statement. The organization’s treasury has witnessed a significant reduction, with its main wallet holding approximately $650 million.

This represents a steady decline in the foundation’s holdings since March 2022. At that point, the Ethereum Foundation treasury reported a balance of about $1.6 billion. Moreover, the Ethereum (ETH) price was notably higher, and the foundation held approximately $1.3 billion in ETH and about $11 million of “other crypto.” This underscores the market volatility that has impacted the foundation’s holdings. 

The prominent researcher at the Foundation, Justin Drake, confirmed that he is the Reddit user “bobthesponge1,” who participated in a typed ask-me-anything on an Ethereum subreddit. Also provided the information on the organization’s finances. The foundation spends around $100 million per year and currently has roughly a 10-year runway, depending on the price of ether (ETH), the blockchain’s native token.

Drake wrote in the AMA session that “The EF has a fiat buffer to cover a couple of years of runway.” 

Ethereum co-founder Vitalik Buterin mentioned that the current budget strategy is to spend 15% of the remaining money every year. On the other hand, as per on-chain data, the Ethereum Foundation has transferred 35,000 ETH, approximately worth $94.07 million, to the Kraken exchange.

Meanwhile, over the last two years, funds have notably declined due to the burn rate and price decreases. 

Price Momentum of Ethereum 

Over the past week, ETH faced a critical drop of over 10.40%, falling back from $2,525 to $2,330. At press time, the asset witnessed a decline of 5%, trading at $2,260. Meanwhile, the daily trading volume has increased by 94.33%, to $26.12 billion, as per CMC data. 

The token visited its 24-hour low and high price at $2,150 and $2,405, respectively. Moreover, the market sentiment of ETH stays in the fear zone, as the fear and greed index stays at 27. 

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