What to Know:
EF halts open ESP grant applications, moving to a strategic funding model.
In 2024, $3M supported 105 projects across tools, research, and education.
ETH hits $4,945 ATH with surging institutional inflows and ETF demand.
The Ethereum Foundation (EF) recently announced a significant change to its Ecosystem Support Program (ESP), the program that fuels development across Ethereum—by pausing open grant applications. Instead of accepting proposals through its usual reactive, open intake, the Foundation will reorganize ESP into a more strategic, proactive funding model, with detailed updates expected in Q4 2025.
In 2024, ESP gave out almost $3 million in open grants to 105 projects. These projects included tools for developers, data analysis, education, research, and building communities.
Why the Change Matters
ESP has been a key part of Ethereum’s ecosystem for a long time, funding projects that make the core infrastructure stronger, make tools for developers better, encourage open research, and support public goods. In the old model, projects used open forms to apply. Depending on scope, proposals could qualify as small grants (up to ~$30,000) with a faster evaluation process or project grants (no fixed cap) with in-depth review, sometimes taking several months.
The new strategic shift shows that EF wants to be more careful about how it gives out grants, making sure that the money goes to the Foundation’s most important projects and that it has the biggest effect. Even though there was a break, EF says it is still committed to helping public goods with money and other forms of help. The goal of making the Ethereum ecosystem better is still the same.
The Ethereum Foundation also helps build and keep the network running. It helps with protocol upgrades through the Protocol Support Team, helps with developer conferences like Devcon and Devconnect, and supports educational and security efforts. These actions have made EF a key steward for Ethereum’s long-term health. They do this by hosting events, helping developers connect with each other, and supporting infrastructure and research, not just by giving money.
Ethereum’s Current Market
Ethereum has been doing great lately, breaking its all-time high from 2021 and reaching $4,945.60 on August 24. Its total market value is now close to $600 billion. This surge isn’t just because of hype; it’s also because of a strong wave of institutional demand. Major players, like spot ETFs, have put billions of dollars into Ethereum, showing that they are very confident in its long-term appeal. For example, ETFs brought in almost $500 million in just one day, and since June, institutions have bought about 4.9% of the ETH that is currently in circulation.
Corporate treasuries are getting into the act too. BitMine Immersion Technologies now holds over 1.7 million ETH, making it one of the largest institutional holders, while firms like SharpLink Gaming and unnamed whales have collectively scooped up billions of dollars in Ether through exchanges and OTC channels. Even Peter Thiel, the well-known venture capitalist, has ramped up his exposure his fund owns strategic positions in Ethereum-linked firms and backs the broader ecosystem.
This accumulation frenzy and growing institutional wallet activity have helped Ethereum rally much faster than Bitcoin in 2025 posting around 45% gains year-to-date, compared to Bitcoin’s more modest rise. Analysts think this is more than just a short-lived rally because it has structural advantages like being used in DeFi, stablecoins, tokenization, and an improving macroeconomic situation.
Final Thoughts
The Ethereum Foundation’s decision to stop accepting open grant applications for ESP is a big change in how they fund the ecosystem. EF wants to better support critical infrastructure, tools, research, and community work by moving from a reactive, open intake system to a more planned, strategic model.
Although the details of the new model are pending, one thing is clear: the Foundation remains dedicated to propelling Ethereum’s growth not through breadth but through intentional investment in high-impact projects. Even though ETH is at all-time highs, the Foundation’s decision may come as a surprise; maybe they’re planning something really big. Only time will tell.
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