Ethereum Foundation stakes record amount of ETH

The Ethereum Foundation made its biggest ETH staking deposit to date. The shift arrives after years of selling and pressure for the Foundation to put its reserves to good use. 

The Ethereum Foundation staked $46.2M worth of ETH in a series of transactions, its biggest daily transfer to the Beacon Chain contract. After the transfer, the Foundation still carried 147.47K ETH, holding one of the more significant treasuries. 

The Ethereum Foundation started staking just as Bitmine wrapped up its staking operations. Currently, 2.7M are pending to enter the Beacon Chain contract, and the waiting time has fallen below 50 days. 

The Foundation’s end goal is to stake 72K ETH, according to earlier statements by Vitalik Buterin. While selling from the Ethereum Foundation was small and did not directly affect the market, it was considered a sign of ignoring the long-term potential of ETH. Previously, the Foundation allocated some of its funds to DeFi, including Steakhouse lending vaults. The Beacon Contract remains the most conservative and reliable source of yield, while also increasing network security.

The Foundation’s move arrived as ETH recovered to $2,054.00, trading with a neutral sentiment.

Alongside the Ethereum Foundation, data also shows ETH is flowing out of exchanges and that staking is expanding, indicating whales and long-term holders are ready to hold the token for the long term. 

Ethereum Foundation creates Ethereum Economic Zone

The Ethereum Foundation changed its attitude toward L2 chains. Previously, the chains held strong brands, and each one was a hub for liquidity. 

The Ethereum Economic Zone aims to blur the boundaries between the L1 mainnet and L2 chains. The Foundation noted rollups were the answer to scaling, lowering transactions on both the Ethereum network and known L2s. 

However, the Foundation noted liquidity was siloed into each L2 network, with minimal interaction between those ecosystems.

L2 chains also spawned their own lists of apps, becoming disconnected from Ethereum. 

Ethereum Economic Zone rollups will be created for contracts that would otherwise be deployed on the mainnet. With this move, the Ethereum Foundation creates its own scaling infrastructure, without the brands and bridging used for other networks. 

The move may lower the output of L2 chains and their DeFi apps, which have so far been the main use case for Arbitrum, Base, ZKSync, Optimism, and other prominent L2s. 

The Ethereum Foundation remains in focus for governance conflict

The Ethereum ecosystem is facing another rift based on the supporters of the Milady project. 

On one side, the Milady supporters claim they can become the online presence of Ethereum and increase its cultural momentum at a time of doubt, so the network can survive in the long run. 

For others, the Milady supporters are sporting obscure philosophy, with little care for the ETH market performance and the chain’s economic potential. 

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