"Ethereum could begin a nuclear-bomb-level surge"

Son Min

Summary

Crypto Gucci analyst said Ethereum (ETH) is facing record-low liquidity and record-high institutional demand simultaneously.
He said that U.S. spot ETF holdings, large corporate accumulation, and the popularization of staking are causing supply-reduction factors to occur simultaneously for Ethereum.
He said Ethereum's supply growth rate since The Merge is only 0.5%%, highlighting its scarcity.

Ethereum (ETH) is showing record-low liquidity, and with institutional demand surging, it is forecast to see a strong price increase.

On the 14th (local time), according to Cointelegraph, Crypto Gucci, a crypto asset (cryptocurrency) analyst, said, "For the first time, Ethereum has three supply-reduction factors simultaneously" and "If demand for Ethereum surges under the current conditions, the price will experience a 'nuclear-bomb-level' spike."

He cited crypto asset accumulation firms (DAT) as the first supply-reduction factor. According to the Strategic Ethereum Reserve, the amount of Ethereum accumulated by firms in recent months approaches 5.9 million. This is about 5% of the total Ethereum supply.

The second is U.S. spot exchange-traded funds (ETFs). Currently, U.S. Ethereum spot ETFs hold a total of 6.84 million ETH. This is 5.6% of the total supply.

The last is the popularization of staking. Currently about 35.7 million ETH is staked on the network, accounting for 30% of the total supply. With a withdrawal waiting period of about 40 days, most of this is illiquid assets not circulating in the market.

The analyst reiterated, "In this cycle, Ethereum faces record-high institutional demand and record-low liquidity at the same time" and "In such a structure, price increases can only appear explosively."

Additionally, some experts note that Ethereum's supply growth rate since The Merge is only 0.5%. Compared to Bitcoin (BTC) supply increasing 4% over the same period, Ethereum's scarcity is highlighted.

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