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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.