Ethereum Foundation Unveils New Fiscal Policy—ETH Receives Dual Boost  

TradingKey – The Ethereum Foundation (EF) announced a renewed focus on ecosystem growth and reduced spending, a move that could drive ETH prices higher.  

On June 4, the Ethereum Foundation released its latest financial management policy, emphasizing strengthening Ethereum’s ecosystem—particularly the DeFi sector.  

Historically, Ethereum (ETH) dominated the total value locked (TVL) in decentralized finance, holding over 90% market share in its early years. However, this has dropped to around 50%, as rivals like Solana (SOL), TRON, and BSC seized market opportunities left open by Ethereum’s slower adaptation.  

Ethereum (Blue) vs. Other Blockchain TVL Share – Source: DefiLlama.

Alongside long-term ecosystem expansion, the Ethereum Foundation also announced gradual reductions in annual operating expenses.  

This signals that large-scale ETH sell-offs—seen in the past two years—will slow, reducing market pressure and boosting investor confidence.  

In practice, EF has already decreased ETH sales this year, contributing to price stabilization. Over the past month, ETH has surged 40%, outperforming Bitcoin (BTC), which recorded a 10% gain.  

ETH vs. BTC Monthly Price Performance – Source: CoinMarketCap.