Ethereum’s recent price rally is fueled by a significant structural change in demand, according to a recent investor note from the Director of Investments in Bitwise Matt Hougan.
Since May 15, an increase in the activity of purchase of funds negotiated on the stock market (ETF) and companies has led to the acquisition of nearly 2.83 million ETH, worth more than $ 10 billion.
This purchase activity has exceeded the new ETH emission by a factor of 32, contributing to an imbalance in the supply which, according to analysts, could persist. Hougan explained that the price of Ethereum had climbed more than 65% in the last month and 160% since April.
While the feeling of the market plays a role in the movements of cryptographic assets, the executive Bitwise attributes this increase mainly to the fundamental principles, in particular the gap between the quantity of ethn purchased and the quantity created of the chain. In his opinion, the current dynamics reflect what happened with Bitcoin after the launch of the BTC Spot ETF at the beginning of 2024.
FNBs and societies stimulate the accumulation of Eth
The reversal of the trend for Ethereum became evident in mid-May, when the entries in ETHEREUM ETHEREUM have grown. According to Hougan, these investment vehicles have drawn more than $ 5 billion since then. Meanwhile, corporate entities began to position ETH as a strategic asset within their treasury bills.
Companies such as Bitmin Immersion Technologies (BMNR), Sharplink Gaming (SBET), Digital Bit (BTBT) and the Ether (Dynx) machine have all announced large eTH or purchasing plans, with a bit of Bitming only 5% of the total supply of ETH.
Sharplink Gaming, for example, has acquired more than 280,000 ETH, while Bitmin amassed more than 300,000 ETH. Bit Digital sold its Bitcoin reserves to acquire more than 100,000 ETH, signaling a change in institutional preferences to Ethereum.
These companies do not only make important acquisitions, but also by publicly describing long -term ETH strategies, indicating a structural commitment to assets.
The prospects suggest a continuous dynamic of demand
The ascending trajectory of the demand seems likely to continue. Hougan notes that although ETH’s market capitalization represents around 20% of Bitcoin, FNB ETH still represent less than 12% of the assets subject to management in Bitcoin ETF.
Bitwise expects the gap to shrink as growth trends and tokenization of the stables, both mainly supported by Ethereum, attract other capital entries.
In addition, Hougan highlights the growing attraction of ETH treasury companies, whose actions assessments are currently negotiated at bonuses at the value of their underlying STH assets. This condition of the market encourages the accumulation of new companies by public enterprises, especially if the premiums remain.
It provides that these entities could collectively buy $ 20 billion ETH in the next year, which, given the estimated Ethereum offer of 800,000 ETH at that time, could represent almost seven times more demand than the new offer.
Although Ethereum does not share Bitcoin’s hard calculation, Hougan underlines that the action of short -term prices is largely dictated by the mechanics of supply and demand. Given the current imbalance, he thinks that the upward price movement could continue.
Whether or not this trend is supported in the long term, the action of short -term prices of Ethereum seems more and more influenced by institutional behavior and the adoption strategies of the treasury.
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