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Ethereum Foundation Embraces DeFi in Strategic Treasury Overhaul

Ethereum Foundation Embraces DeFi in Strategic Treasury Overhaul

Published:
2025-06-05 16:07:21
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The Ethereum Foundation has announced a significant shift in its treasury management strategy, moving assets into decentralized finance (DeFi) protocols while reducing its reliance on ETH sales. This strategic pivot comes as the organization prepares for what it describes as a critical 18-month phase for Ethereum's ecosystem. Under the new policy, operating budgets will be directly tied to ETH holdings, with quarterly reassessments to ensure alignment with the foundation's goals. This move signals a strong vote of confidence in Ethereum's long-term viability and the growing importance of DeFi in the broader cryptocurrency landscape. The foundation's decision to reduce ETH selling could also have positive implications for the token's price stability and growth potential. As of June 2025, this development comes at a time when Ethereum continues to solidify its position as the leading platform for smart contracts and decentralized applications. The foundation's strategic shift may serve as a catalyst for further institutional adoption of both Ethereum and DeFi protocols, potentially driving innovation and value across the ecosystem.

Ethereum Foundation Shifts Treasury Strategy to DeFi, Cuts ETH Selling

The ethereum Foundation is overhauling its financial strategy, moving treasury assets into DeFi protocols while reducing its reliance on ETH sales. This pivot comes as the organization prepares for what it describes as a critical 18-month phase for Ethereum's ecosystem.

Under the new policy, operating budgets will be directly tied to ETH holdings, with quarterly reassessments. Foundation representative Hsiao-Wei Wang confirmed current reserves provide 2.5 years of operational runway, prompting more strategic capital deployment.

The Foundation has begun lending ETH and borrowing stablecoins through audited protocols like Aave, marking a significant departure from its previous arms-length relationship with DeFi applications. Analysts view this as a bullish signal for ETH, as it reduces sell pressure while demonstrating institutional confidence in Ethereum-based financial infrastructure.

Ethereum Whales Accumulate $360M as Technical Setup Suggests Impending Breakout

Ethereum tests a critical resistance zone between $2,680-$2,700 following a 3% rebound, with institutional players like BlackRock and Galaxy Digital acquiring over $283 million worth of ETH in recent OTC transactions. On-chain data reveals a single entity moved 108,278 ETH through an institutional wallet, signaling strong accumulation at current levels.

The second-largest cryptocurrency has consolidated between $2,475 and $2,680 since early May, forming an ascending triangle pattern that typically precedes upward breakouts. A decisive close above $2,708 could trigger $303 million in short liquidations and propel ETH toward $3,100-$3,500 targets according to technical analysts.

Market structure mirrors the institutional adoption narrative, with Galaxy Digital's OTC desk withdrawing 89,000 ETH from exchanges before facilitating the nine-figure transfer. Ethereum's current price action at $2,640 represents a 1.3% daily gain as traders await resolution of the month-long consolidation.

Is Ethereum the New Wall Street Darling? $743M ETF Inflows Say Yes

Ethereum is quietly building momentum despite recent price consolidation. Surging ETF inflows and declining exchange reserves signal growing institutional confidence. The cryptocurrency now approaches a critical technical juncture, with potential breakouts toward $2,000 or $3,000 if current fundamentals hold.

Research firm 10x Research, previously bearish on ETH ETFs, now acknowledges surprising upside price action. The market watches closely whether Wall Street has developed compelling narratives to sustain this institutional interest. Ethereum's triangle pattern formation suggests impending volatility—either a sharp breakout or rejection at key resistance levels.

Ethereum Foundation Introduces Conservative Treasury Policy with 15% Opex Cap

The Ethereum Foundation has unveiled a revised treasury strategy, instituting a 15% annual cap on operational expenditures while maintaining a 2.5-year financial buffer. The Swiss non-profit, which holds significant ETH reserves from Ethereum's genesis, aims to gradually reduce spending to 5% over five years, citing 2025-26 as critical years for protocol development.

Strategic asset diversification will include periodic ETH-to-fiat conversions, ensuring continuous funding for ecosystem projects regardless of cryptocurrency market volatility. The foundation emphasized that all treasury decisions—including ETH sales—prioritize operational continuity over market timing considerations.

|Square

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