Ethereum Foundation, the nonprofit organization behind Ethereum on Monday disclosed its financial report for the year ending March 31, 2022.
As per the report, the Ethereum Foundation’s treasury is now worth over $1.6 billion, with ETH being 80.5% of the total holdings. Moreover, the foundation has increased its ETH holdings in the financial year 2021-2022, with its valuation rising nearly 56%.
Ethereum Foundation Increases Its ETH Holdings
The Ethereum Foundation’s financial report reveals an increase in Ethereum (ETH) holdings in its treasury. A previous report showed that as of March 2021, the foundation had 430k Ether valued at $826 million, when the price was trading near the $2k range.
Whereas, as of March 31, 2022, the Ether in its treasury is now valued at $1.294 billion, a 56% increase since last year. However, the holding is just 0.297% of the total ETH supply. The valuation is based on the Ether price at $3k.
Under its conservative treasury management policy, the Ethereum Foundation currently has 81.2% of its holdings in crypto, with ETH being 80.5%. On the other hand, the non-crypto holdings have risen to 18.8% worth $302 million.
The Ethereum Foundation disclosed in its report that the foundation spent about $48 million in the last financial year. Among the $48 million, $21.8 million was spent on L1 R&D and $1.9 million was spent on L2 R&D.
Almost $20 million was spent on external activities including grants, delegated domain allocations, third party funding, bounties, and sponsorships.
Ethereum Transition to Proof-of-Stake (PoS)
The Ethereum community is currently awaiting the transition from its current proof-of-work algorithm to proof-of-stake. With the transition, Ethereum will undergo major changes, including a reduction in energy consumption and staking rewards for all ETH holders. However, developers recently announced the Ethereum merger’s postponement to July end, despite the successful ‘Shadow fork’ test.
The Ethereum community believes the upgrade could increase the ETH price drastically as a result of low transaction fees. This would increase Ethereum’s prominence in the crypto market. Also, the Ethereum-dominated NFT space will benefit more from the proof-of-stake transition.
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Source: https://coingape.com/ethereum-foundation-eth-holdings-2021/