Almost 19% of cash made up of non-crypto assets
When we look closely at the allocation of assets present in Ethereum 's treasury , it is the proportion of traditional assets that may surprise. Indeed, it amounts to nearly 18.8% for just over 300 million dollars.
The rest of the cash is logically made up of an overwhelming share of Ether with 80.5% or 1.29 billion dollars. This is almost 0.3% of the total amount of Ether in circulation. For the complement, the foundation has other cryptocurrencies for just over 0.7% and around $11 million.
If the amount of traditional assets, presumably Fiat currency may surprise at first. It serves here as a safety margin in the event of a major crisis in the world of crypto-assets. This should make it possible to continue the development of the project even in the event of a fall in prices , in particular of Ether. A scenario that cannot be ruled out in a market that is still young and immature.
Prudent financial management
Another lesson from this report is the applied financial management of the foundation. We learn that the Ethereum foundation only spent $48 million in 2021.
Among these expenses, we find mainly $21.8 million for research on layer 1, the first layer solution in French, namely the main Ethereum blockchain.
$9.7 million has been spent to grow the Ethereum community. Some 5.9 million for the development platform, 5.1 million for international operations, 3.6 million for research on zero knowledge and finally 1.9 million for research and development on layers 2, solution of second layer like Polygon or Arbitrum to name a few.
An interesting report that allows us to observe the sound and sustainable financial management of the Ethereum project. A way to reassure investors and show the seriousness of the foundation at work on one of the leaders of the blockchain ecosystem. A demonstration all the more important, in a context of uncertainty.
Ethereum thus seems to have all the means necessary for its development, especially in this crucial phase which awaits it, namely the transition from proof of work (Proof-of-Work) to proof of stake (Proof-of- Stake) in the coming months. If you want to invest in ETH yourself, we recommend that you do so on a secure platform such as Capital.com .