According to Etherscan, the Ethereum Foundation holds 80.5% of its assets in ETH, which is an equivalent to $1.294 billion. The latest report for the first quarter of 2022 says this is what details how the nonprofit organization accounts for its $1.6 billion capital.
Non-crypto assets and other investments follow at a distant second at 18.8% or $302 million. Lastly, the Ethereum Foundation holds $11 million or 0.7% in other Cryptos.
At a market capitalization of $366 million according to Coinmarket cap, the foundation only holds 0.3% of Ethereum tokens in circulation. It does not, therefore, have any capacity to manipulate market trends.
The Ethereum Foundation Is Critical for the Network
The core mandate of the Ethereum foundation is to fund developments in the Ethereum network. Additionally, the fund oversees operations in the network, ensuring Ethereum-based projects receive the incubation support needed to facilitate growth, especially for startups.
Grants are a major operations policy of the organization, which bridges the gaps in venture capital financing to ensure that Ethereum projects are successful.
In the year ended December 2021, the foundation granted startups $48 million. The allocation was as follows:
· $21.8 million – grants for research and development.
· $5.1 million – international operations.
· 9.7 million – community development,
· $1.9 million – research and development.
· $3.6 million -research and development of ZK (zero-knowledge).
· $$5.9 million – Ethereum platform upgrade.
However, the $48 million does not account for the Client Incentive Program (CIP) which incentivizes the 9 leading node operators by granting them 39,168 ETH ($132 million).
Blockchain Projects Require Capital Injection for Growth
Blockchain and Crypto projects require capital injection for growth. Most traditional lenders shun the nascent projects due to the risks associated with untested technology. However, the return on investments is equally promising, and investors stand to benefit by hodling the native tokens and investing in revolutionary projects. One of the notable emerging projects that has attracted renowned investors is MoonPay.
However, some Blockchain whitepapers, such as incorporating Metaverse technology for iGaming, may be too technical for investors to rate and gauge. In this scenario, funding is critical.
ETH is Bullish
As of Tuesday, April 19, 2022, ETH is bullish, having surged by 4% in the last 24 hours. The bull cycle has eased the 7-day loss experienced after the market tanked ahead of the concluded holiday period.
Eth is currently trading at over $3,000 compared to BTC which is priced at over $40,000. The digital asset is the second most significant Cryptocurrency in the market, with a dominance of over 19% compared to BTC, which accounts for over 40% of the Crypto space.