- Ethereum Foundation invested $ 120 million in Ether in Defi protocols such as Aave and Compound.
- The move discussed the past rely on ETH sale and strives for sustainable financing strategies.
The Ethereum Foundation has taken a bold step by using $ 120 million in Ethereum [ETH] In various Defi protocols, including connection, Aave [AAVE]and spark.
This step comes in response to the growing concern about the previous approach of the foundation to sell ETH to cover operational costs.
Ethereum Foundation is shifting $ 120 million from ETH to Defi protocols
On February 13, The Ethereum Foundation has taken a strategic step by assigning $ 120 million to Ether to various decentralized finance (Defi) protocols.
In response to concern about the earlier dependence on the Foundation of ETH sale for operational financing, a total of 45,000 ETH was deployed in Compound, Aave and Spark.
The allocation included 4,200 ETH for composition, 10,000 ETH to Spark and 30,800 ETH to Aave, with ETH at that time around $ 2,600.
This investment of $ 120.4 million marks an important shift to more sustainable financing methods for the current initiatives of the Ethereum Foundation.
Community reactions
The decision of the Ethereum Foundation to allocate $ 120 million to Ether to Defi protocols has fueled excitement and optimism.
A founder and CEO Stani Kulechov greeted the move and called the 30,800 ETH deployed in a “biggest allocation of the foundation in Defi.”
Kulechov expressed his conviction that “Defi will win”, because the Ethereum Foundation adds considerable liquidity to the Aave Ecosystem.
The community also repeated similar feelings, in which many appreciate the shift from ETH sale to more sustainable financing methods. 0xness, The pseudonymous co-founder of HYPLAND, joked:
Quite strange that after so many years they have just begun to do this. All we had to do was bullying.
Others recognized the importance of the move, with one comment entry that it is a “solid movement”, and another addition,
Have you taken years to invest in the ecosystem instead of selling. But better late than never.
Ethereum’s Defi strategy and market front views
The hinge from the Ethereum Foundation to Defi signals a strategic effort to achieve sustainability in the long term by using yield -generating protocols.
By reducing the dependence on direct ETH sales, this step could create a self-sufficient financing model.
However, the approach is not without risks – Market volatility and legal uncertainties can influence the return and liquidity management.
Source: TradingView
From a price perspective, Ethereum traded at the time of around $ 2,708 and showed signs of consolidation after recent downward pressure.
The RSI at 39.28 suggests that ETH remains in Bearish territory, although a rebound could be formed. On 25.79m, a steady accumulation indicates potential upward momentum.
If ETH breaks above $ 2,800, bullish sentiment can strengthen, but a decrease of less than $ 2,500 could cause further sale.
