The Ethereum Foundation is taking a decisive step to strengthen decentralized finance (DeFi) in ETH and to launch a new initiative. This move reflects a renewed strategic focus on increasing DeFi adoption, improving protocol security, and promoting sustainable growth across lending, trading, and on-chain financial services.
Why Grow Developer Support And Ecosystem Funding
In an important development, the Ethereum Foundation is launching a renewed and ambitious protocol to strengthen DeFi within the ETH ecosystem. Ethereum Daily has it was revealed at X that the campaign is framed as a Defipunk approach, focused on building a truly permissionless, private, secure, and completely open source financial infrastructure. The goal is to allow anyone, anywhere, to save, borrow, hedge, or make payments without relying on large entities such as banks or corporations.
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Rather than focusing solely on incremental improvements to existing applications, such as advanced stablecoins, the Foundation’s vision is reportedly aimed at deep structural innovation. Key areas include developing more secure values predictionsdeveloping privacy loans to reduce wasteful spending, and integrating artificial intelligence (AI) to strengthen system security.
With the newly formed DeFi team leading the effort, i the foundation invites developers who share their vision to help build a financial system that will give users full control and increase accessibility, not just speculators.
How Inbound and Outbound Trends Reveal Strategic Positioning
Even as ETH’s price action has plummeted from $4,900 to below $2,000, the Ethereum spot ETF’s flow is quietly showing a change behind the scenes. Head of research at Lisk, analyst Leon Waidmann, said that the ETF flow dynamics showed that after a period of large outflows in the middle of 2025, the intensity of the selling pressure has gradually decreased.
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Meanwhile, the large incoming waves seen in late 2024 and early 2025 have subsided, and the amount is much higher. selling panic what followed has largely disappeared. The recent ETF flow bars are very thin in both directions compared to the previous period volatility, and sellers are running out of steam.
Waidmann noted that this change is important because, despite some of the sharpest ETH pullbacks in recent memory, institutional outflows appear to be weakening. Although the weak hand that wanted to go out has gone too far, this means that there is no bottom.
However, there is still a slight bias towards exits in recent weeks, indicating that no rally is guaranteed signal at the moment. Waidmann emphasized that the intensity of the selling pressure is clearly ending, which is the first step that must happen before any trend reversal. In his opinion, participants should be aware when sales dry up before sentiment returns, because that’s usually what’s next. deliver will start building.
Featured image from iStock, chart from Tradingview.com
