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Ethereum News: Supply Shock in 2025?
Recent analyses suggest that Ethereum (ETH) may be on the brink of a significant supply shock by 2025. In the past 24 hours, the selling pressure in the cryptocurrency market has intensified, with Ethereum experiencing a loss of approximately five percent, bringing it close to the psychologically important threshold of $4,000. Over the past week, the decline has exceeded 8%, yet some analysts view this correction as a potential buying opportunity for the cryptocurrency.
Analyst Crypto-Gucci.eth highlights a unique combination of structural factors that could drastically reduce the available supply of Ethereum. He describes a "Triple Supply Vacuum," which includes Digital Asset Treasuries (DATs) that permanently lock large amounts of ETH in protocol reserves, the introduction of spot ETFs that consolidate institutional demand, and a historic level of staking, with over 40% of the total supply currently locked and not freely tradable. This combination could lead to a significant supply shock if demand continues to rise.
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“ETH’s supply is disappearing faster than ever. Over 40% of all $ETH is currently locked out of circulation and continues to climb rapidly.”
On-chain data from Glassnode supports the notion of an increasing supply shock, showing that less than 12% of the total ETH supply is currently held on exchanges, the lowest level since 2016. This historical low indicates that more investors are withdrawing their coins for long-term holding or staking, which could lead to rapid price increases during periods of rising demand.
Key Takeaways:
- Ethereum's price has dropped over 8% in the past week.
- Analysts predict a potential supply shock by 2025 due to various structural factors.
- Less than 12% of ETH is currently on exchanges, indicating a significant reduction in available supply.
Ethereum as Wall Street's Favorite: BitMine Continues Buying Spree
BitMine Immersion Technologies, the largest Ethereum treasury company, has made headlines by acquiring 104,336 ETH worth approximately $417 million. This transaction, which has not yet been officially confirmed by BitMine, brings their total ETH holdings to 3.03 million, valued at around $12.2 billion. Tom Lee, the chairman of BitMine, continues to promote Ethereum as a favorite within the traditional financial system.
BitMine has expressed its goal of accumulating 5% of the total Ethereum supply, and they have already secured over 2.5%. During a recent discussion at the Korea Blockchain Week, Lee stated that Ethereum is favored by Wall Street and the White House for future blockchain initiatives, describing it as a "truly neutral chain."
Key Takeaways:
- BitMine has acquired 104,336 ETH during a market downturn.
- The company aims to accumulate 5% of the total Ethereum supply.
- Tom Lee emphasizes Ethereum's role as a preferred blockchain for institutional adoption.
Ethereum: A Turnaround Ahead?
Ethereum is currently experiencing a notable turnaround after a significant outflow of $429 million from Ethereum ETFs, the largest exodus since September. Within 48 hours, however, $236 million flowed back into these funds, indicating a potential institutional buying opportunity. As the price stabilizes around the $4,000 mark, the question arises whether this signals the start of a new rally or if further declines are imminent.
During this period, large investors, or "whales," have been particularly active, accumulating between 150,000 to 250,000 ETH, valued at approximately $600 million, between October 14 and 16. This accumulation during a downturn is historically seen as a bullish signal, suggesting that institutional confidence in Ethereum remains strong despite recent volatility.
Key Takeaways:
- Ethereum ETFs saw a significant reversal in flows, with $236 million returning after a $429 million outflow.
- Whales accumulated approximately $600 million worth of ETH during the downturn.
- Institutional confidence in Ethereum appears to be unshaken despite market fluctuations.
Ethereum: Resilience Amidst Market Turmoil
Despite the recent cryptocurrency market crash, Ethereum has shown remarkable resilience. Following the dramatic downturn on October 10, ETH has stabilized, with institutional investors seizing the opportunity to buy the dip. This trend indicates a fundamental shift, as professional investors appear to be diversifying away from Bitcoin and recognizing the intrinsic value of the Ethereum ecosystem.
In the same timeframe, Ethereum saw a 25% increase in outflows from exchanges, the highest since late September, indicating that ETH is being moved into cold wallets, further reducing the available supply in the market. The upcoming "Fusaka" upgrade, scheduled for December, promises to enhance the network's efficiency, potentially paving the way for future growth.
Key Takeaways:
- Ethereum has stabilized after the market crash, with institutional investors buying the dip.
- Exchange outflows increased by 25%, indicating a shift towards long-term holding strategies.
- The upcoming Fusaka upgrade is expected to improve network efficiency.
Behind the Scenes of Ethereum with Marius van der Wijden
In a recent episode of Crypto Nerds, host Eric Heinemann interviews Marius van der Wijden, a developer at the Ethereum Foundation. Marius shares his journey from a casual coder to a key player in Ethereum's development, particularly in scaling the Layer-1 structure. His work has significantly contributed to making Ethereum more efficient and environmentally friendly.
Marius discusses the transition from Proof of Work to Proof of Stake, which reduced energy consumption by 99.98%, marking a significant milestone in blockchain history. He emphasizes the importance of making Ethereum user-friendly, aiming for a future where interacting with the network does not require extensive technical knowledge.
Key Takeaways:
- Marius van der Wijden shares insights into his journey and contributions to Ethereum's development.
- The transition to Proof of Stake has drastically reduced Ethereum's energy consumption.
- Future projects aim to enhance user-friendliness and efficiency within the Ethereum ecosystem.
Sources:
- Ethereum News: Angebotsschock in 2025? Das spricht dafür
- Ethereum als Wall-Street-Favorit: BitMine weiter in Kaufrausch
- Ethereum: Wende voraus?
- Ethereum-Treasury-Marktführer BitMine fügt während Kursrückgang 417 Mio. $ hinzu
- Ethereum: Trotz Krypto-Crash stark
- Crypto Nerds: Hinter den Kulissen von Ethereum mit Marius van der Wijden
