Will ETH’s 66% Spending Cut Make It Shoot to the Moon?

Will ETH‘s 66% Spending Cut Make It Shoot to the Moon?

  • The Ethereum Foundation decided it’s cutting expenses from a hefty 15% down to a lean 5%. Because who needs extravagance when you can have austerity? 🎩💸
  • They’ll back ‘audited’ DeFi protocols — because nothing says “trust us” like a red-flag-free financial luau. 🕵️‍♂️🔥

In what might be the most exciting thing to happen to Ethereum since someone put a pixelated cat on a rocket, the Foundation announced it’s slashing its treasury spending from a giant 15% to a more reasonable 5%. That’s almost a two-thirds cut — a number so dramatic it makes ‘going lean’ look like a weight-loss tweet. 💼✂️

According to the wise folks at EF, their new game plan is to keep liquidity high and operational spending — affectionately known as opex — low enough so they can still buy lattes without refinancing the entire operation.

“Current targets are 15% of treasury for annual opex over 2.5 years. We intend to cut this roughly by half over five years, ending at a cozy 5% like all the big, fancy endowments.” — probably

Their strategy includes investing in ‘reasonable’ returns so they won’t end up sitting at a poker table with Monopoly money. Because trust-minimized DeFi protocols are just as trustworthy as that guy who promises you a great investment opportunity but only if you send him your college fund. 🎲💸

EF to leverage DeFi for better returns

Hsiao-Wei Wang, the solemn guardian who presumably has a crystal ball, says they’re going for ‘audited’ DeFi protocols only. No risky stuff — just the kinds that make you sleep better at night, not wake up to a nightmare.

“We prefer the kind of DeFi where you can trust the code — like that one friend who always shows up on time and never flakes.”

Among their favorites are tokenized Real-World Assets (RWAs), reserves that match liabilities (whatever that means), and assets that make quick liquidity look like a walk in the park. All to ensure the Foundation doesn’t lose its marbles while pursuing ‘DeFipunk’ values — because who doesn’t want privacy, decentralization, and the thrill of self-sovereignty? 🚀🔒

The market’s buzzing with optimism, which means either we’re all about to hit the moon or just really good at convincing ourselves we are.

As of late 2024, the Foundation’s treasury hovered around $970.2 million — split pretty evenly between crypto and non-crypto stuff. ETH makes up a staggering 99% of their crypto stash, because why diversify when you can double down on the digital gold rush?

Ethereum Foundation Treasury Breakdown

Data from Arkham Intelligence shows they’re holding 216.15K ETH, worth over half a billion dollars. That’s right: a half-billion, not a typo. The fund’s recent overhaul is apparently as aggressive as a squirrel on Red Bull — gobbling up ETH faster than you can say ‘hodl’.

They’ve amassed nearly a million ETH, worth over $2.5 billion — a colossal hoard that has investors salivating, speculators salivating more, and regulators probably just scratching their heads.

Will this FOMO (Fear Of Missing Out) send ETH skyrocketing? Most likely — with enough positive vibes, we might even see Elon Musk tweet about it, assuming he remembers what Ethereum is.

Meanwhile, analytics site Glassnode shows ETH’s Realized Cap increased by a cool $7.5 billion — because apparently, everyone suddenly decided ETH was the best thing since sliced bread (or at least sliced Bitcoin). The current price range of $2.3K to $2.8K has traders rubbing their hands, dreaming of moon landings.

ETH Realized Cap Growth

One analyst, Mathew Hyland, suggests ETH might be gearing up for a breakout, like a boxer on the ropes just before knocking out the opponent. If it breaks free of its Bollinger Bands’ constriction — stay tuned for a climb to that elusive $3,000 mark and possibly more excitement than a reality TV reunion. 📈💥

ETH Technical Analysis

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2025-06-05 12:15