Recently, I noticed an interesting phenomenon—Ethereum's strategic reserves and various ETFs currently hold 10.74% of the total supply, which amounts to approximately $40.4 billion. At first glance, this percentage doesn't seem particularly high, but there's a key point that has been overlooked: Ethereum also has a massive amount of tokens locked in staking contracts, so the actual freely tradable ETH in the market is much less.



Institutions have been increasing their holdings, and staking locks are ongoing, resulting in a shrinking supply available for trading in the market. This compression on the supply side will directly reflect in the price—pushing it upward.

From a trading perspective, Ethereum is currently priced at $3,137, leaving considerable room to reach new all-time highs. If this supply contraction trend continues, by 2026, Ethereum could perform quite well. This is not wishful thinking but based on tangible changes on the supply side.
ETH1.08%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
0xDreamChaservip
· 01-05 18:21
The supply side is really tightening, and I agree with this logic. Institutions are bottom-fishing, staking, and locking in positions, which raises concerns about liquidity. It's inevitable that prices will go up. $3,137 is just the beginning, and there is indeed room for imagination by 2026.
View OriginalReply0
retroactive_airdropvip
· 01-04 23:52
The logic of supply tightening sounds good, but is staked ETH really considered "locked"? You can unstake at any time, so there's some exaggeration here. --- $40.4 billion sounds like a lot, but it accounts for less than 11%, so it feels a bit overstated. --- Institutions hoarding coins, retail investors getting cut, when will this cycle be broken? --- The prediction for 2026 is indeed a bit distant. Right now, the key is whether we can hold the 3137 level. --- The idea of staking to lock in supply and reduce circulation is interesting, but whether the price rises or not still depends on market sentiment; supply side alone isn't enough. --- The ETF volume is far behind that of the US stock market, so don't take it as solid proof of an upward trend. --- So, is now a good time to enter, or should we wait for a pullback? --- The premise for this logic to hold is that there isn't significant selling pressure, but what if there is? --- $40.4 billion is indeed a substantial amount, but it could also easily become a target for dumping. --- The part about staking ETH is indeed easy to overlook; this perspective is somewhat interesting.
View OriginalReply0
GasGuzzlervip
· 01-04 23:50
$40.4 billion locked up, and the truly liquid ETH is so scarce. Institutions are still frantically stockpiling. This logic makes perfect sense.
View OriginalReply0
IronHeadMinervip
· 01-04 23:50
The supply tightening has been evident for a while now. Institutions are pooling together to stake, while retail investors are still debating whether to enter the market. The gap is getting bigger and bigger.
View OriginalReply0
LiquidatedThricevip
· 01-04 23:49
Here we go again with the supply shortage hype, but there’s actually some substance to it. How should I put it, I believe in the staking lock-up part, and institutions are indeed buying the dip. I just don’t know what will happen by 2026, it’s too far ahead.
View OriginalReply0
liquidation_surfervip
· 01-04 23:36
The logic of supply tightening has become tiresome; the key is to see when institutions start offloading their holdings.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)