The Ethereum Foundation is recalibrating its strategy amid significant market pressures, emphasizing cybersecurity and code integrity over competing with high-throughput chains. This shift comes as large ETH holders liquidate their positions and the Foundation’s own ETH holdings dwindle to just 0.16% of total supply, starkly lower than typical foundation stakes of 10-50%. Currently, ETH trades around $2,094, over 50% below its August 2025 peak.
The recent Dencun upgrade has further complicated the landscape by drastically reducing network fees for layer-2 transactions, leading to a sharp decline in revenue for Ethereum’s base layer. This has raised concerns among investors, who are increasingly focused on tangible performance metrics rather than long-term promises.
As the Foundation aims for longevity and sustainable funding for research, market participants should closely monitor its treasury strategy and any potential impacts on ETH liquidity. The Foundation’s decisions could signal broader trends in how blockchain projects manage tokenomics and investor expectations.
Source: cointelegraph.com