🚀 Ethereum Foundation Moves $120M Into DeFi – What’s the Plan?

The Ethereum Foundation (EF) just made a big move, shifting $120 million into DeFi protocols to earn some extra yield on its reserves. With an estimated 1.5% interest rate, this could bring in around $1.5 million annually—not bad for just parking some ETH! 💰

Here’s how the money is being spread out:
✅ 30,800 ETH ($81.6M) → Aave

• 20,800 ETH in the main Aave market
• 10,000 ETH in Aave Prime
  ✅ 10,000 ETH ($26M) → Spark
  ✅ 4,200 ETH ($11.2M) → Compound

🔎 What’s Going On With EF’s Reserves?

Back in November 2024, the Ethereum Foundation reported that its treasury was sitting at around $970M. Crypto researcher Justin Drake estimated that, at its current $100M annual spending rate, the EF has enough funds to run for 10 years.

Even with this massive war chest, the foundation has taken heat for selling ETH from its reserves, which some say puts downward pressure on Ether’s price. There are also ongoing transparency concerns, with critics arguing that staking could be a better way to cover expenses. 🧐

🏛️ Leadership Shake-Up at Ethereum Foundation

The Ethereum community has been pretty vocal lately, with some members frustrated over EF’s operations. One user, fishbiscuit, called it a “week of scapegoating” Ethereum Foundation CEO Aya Miyaguchi.

To address concerns, Vitalik Buterin stepped in, announcing “major leadership changes” at EF. Joseph Lubin (CEO of ConsenSys) has proposed replacing Miyaguchi with two co-directors:
🔹 Jerome de Tichy (President of Ethereum France)
🔹 Danny Ryan (Former Ethereum researcher)

Big shifts ahead! ⚡

📉 ETH Price Under Pressure—But a Rebound Incoming?

Ethereum’s price has been struggling lately, with global tensions—especially between the U.S. and China—causing some market uncertainty. But there’s hope!

🔹 Analysts at 10x Research point out that Ether’s RSI (Relative Strength Index) has dropped to 36%, meaning it’s oversold—a classic sign of a potential rebound.
🔹 Similar dips in August 2023, May 2024, and August 2024 were all followed by price recoveries. 📈
🔹 The upcoming Pectra update and positive macroeconomic data from the U.S. could give ETH the boost it needs to break past $3,000 soon. 🚀

🏁 TL;DR

🔥 Ethereum Foundation moves $120M into DeFi (Aave, Spark, Compound) to generate yield.
⚖️ Critics call for more transparency, claiming ETH sales hurt the price.
🔄 Vitalik announces leadership changes, with Joseph Lubin suggesting new co-directors.
📉 ETH price under pressure, but RSI suggests a rebound—could soon break $3K!

What do you think? Will ETH bounce back, or are we in for more volatility? Drop your thoughts! ⬇️💬