Institutional interest in Ethereum (ETH) has become increasingly apparent as Crypto Market continues its upward trajectory at a total market capitalization temporarily exceeding $3.8 trillion yesterday. Nowadays, more and more companies are accumulating ETH at an unprecedented pace.
Demand for Ethereum showing no signs of fatigue
According to X’s post by Crypto entrepreneur Kyle Reidhead, demand for ETH was “unusual.” Specifically, over the past 30 days, 10 Ethereum finance companies have collectively accumulated over 550,000 ETH (worth approximately $1.65 billion).
The leadhead emphasized that this momentum is accelerating and there are no signs of slowing down. He said new ETH financing companies are starting up every week and these biggest companies may not have entered the market yet.
Additionally, each of these companies reportedly aims to buy more ETH than last week. If this trend continues, ETH purchases could reach $2 billion next month and $3 billion next month.
This demand will inevitably be a tarpa-off at some point, but it appears unlikely in the short term. In particular, growth in Stablecoin’s supply and lucrative digital asset regulations could further encourage businesses to add crypto to their balance sheets.
The week that starts on July 14th isCrypto Week” In the US, three major digital asset bills are expected to face Congressional votes. These bills focus on important issues such as the potential use of central banks’ digital currency (CBDCs) in monetary policy.
ETH faces a supply shock?
Reidhead added that in the past 30 days, ETH Treasury companies have bagged 0.5% of their total circulation ETH supply. These companies have also transferred ETH to Ethereum Decentralized Finance (DEFI) contracts through staking or lending.
The entrepreneur also portrayed the contrast between the Treasury buyers and Ethereum ETFs, saying that unlike ETFs, these finance companies do not sell. Instead, they seem to be committed to accumulating and retaining ETH over the long term. He said:
This is going to create a supply shock ETH Over the next few months, there really is no way around that. fade ETH And finance company with your own attention.
In support of this paper, data From SoSoValue, Spot ETH ETF has enjoyed an active inflow for nine consecutive weeks, with an additional $907 million added on July 11th.
Another data point to reinforce the debate of the looming ETH supply shock is rapidly Depletion Exchange. That being said, please be careful guarantee. At press time, ETH will trade at $3,018, a 0.9% decrease over the past 24 hours.
Featured images from charts on Unsplash.com, Sosovalue, and TradingView.com
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