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- The Ethereum Foundation has raised prospects for DeFi and ETH in 2025 and 2026.
- Security remains a key focus for the Ethereum Foundation as it conducts restructuring.
The Ethereum Foundation (EF), the non-profit organization that stewards the Ethereum ecosystem, recently emphasized the importance of the 2025-2026 Calendar year. The organization sees these years as crucial for Decentralized Finance (DeFi) and Ethereum (ETH).
EF to Focus on Critical Deliverables
In its latest blog post, the Ethereum Foundation highlighted its key focus for the rest of 2025 and next year. The Foundation has held ETH for a long time but is now increasingly moving into staking and DeFi. Through its new focus, the Ethereum Foundation aims to enhance financial sustainability and support a key application category.
The EF’s current strategy includes solo staking and wETH supplied to established lending protocols. In addition, the Foundation may borrow stablecoins to seek better on-chain yields. EF Management and advisers will review candidate processes for contract security, liquidity risk, and de-peg risk, among other considerations.
Furthermore, the EF plans to fold select on-chain allocations, including tokenized RWAs, into its fiat reserve. Throughout 2025, EF will periodically calculate the deviation of the treasury’s fiat-denominated assets from the Opex Buffer target. This determines the amount of ETH it can sell over the next three months. These sales will be orchestrated through fiat off-ramps or on-chain swaps for fiat-denominated assets.
The Ethereum Foundation envisions a more privacy-focused decentralized finance (DeFi) landscape. The non-profit organization plans to support new DeFi protocols and develop privacy features to achieve this vision. EF will also encourage mature protocols to strengthen Defipunk properties with research collaborations, liquidity, and legitimacy.
The EF can adopt security tools and build a prudent operational structure to improve its safety and privacy practices. This will help the organization remain principled and grow in strength and stability.
EF Delves Further into Security
The EF’s involvement in these crucial areas positions it to set precedents for tools compatible with its underlying goals. The EF’s vision to prioritize security is not just starting. As outlined in our recent blog post, the Foundation unveiled a trillion-dollar security initiative. The core idea is to push billions of users to hold assets on Ethereum.
Meanwhile, speculations about a potential liquidation by the EF have intensified. In a previous article, we discussed that the Foundation risked losing $900 million in liquidation. Notably, a wallet suspected to belong to the Ethereum Foundation deposited 30,098 ETH into a Maker vault.
ETH’s price is still above the $2,600 mark, precisely at $2,417 as of this writing, down 5% in 24 hours. Retail investors continue to show interest in the altcoin, as indicated by the increasing trading volume. This key metric increased by 6.6% over the previous day to $17.12 billion.
Investors’ rising confidence in Ethereum follows a recent restructuring at the EF. As indicated in our earlier discussion, the Foundation reduced its team, aiming to streamline its focus to core tech innovation.
