Ethereum (ETH) market is experiencing an unprecedented influx of institutional funds! Against the backdrop of Bitcoin's declining dominance and soaring search volumes for altcoins, Vance Spencer, co-founder of Framework Ventures, recently made a stunning prediction: it is expected that financial companies focused on Ethereum, such as BitMine and SharpLink, will collectively purchase ETH worth $20 to $40 billion by 2025. Most of this ETH will be invested in the on-chain lending market, attracting stablecoins for circulation or mining, which will become the largest active capital injection in DeFi history. Does this trillion-dollar capital wave signal that Ethereum is about to ignite a new DeFi bull market, fundamentally changing the landscape of the crypto market?
- $20-40 billion ETH swallowing plan: The largest capital injection in DeFi history
Vance Spencer's prediction paints a grand blueprint for the Ethereum market.
Massive purchasing power: Spencer expects BitMine and SharpLink to jointly purchase ETH worth $20 to $40 billion by 2025. According to analysis by crypto market commentator RiskOnBobby, financial companies focused on Ethereum (including BitMine and SharpLink) plan to allocate about $27 billion for additional ETH acquisitions. Most of this comes from BitMine Immersion Technologies, which submitted an amendment on August 12 to expand its at-the-market (ATM) equity plan by $20 billion. Meanwhile, SharpLink, led by Joseph Lubin, also announced plans to raise $900 million for further Ethereum purchases.
DeFi's "blood transfusion": Spencer points out that this massive ETH will be injected into the on-chain lending market, attracting stablecoins for circulation or mining, which will become the largest active capital injection in DeFi history.
Potential acquisition scale: Tom Donleavy, head of venture capital at Varys Capital, estimates that at current market prices, such a fund pool could acquire nearly 6 million ETH. This amount accounts for about 5% of the total supply of Ethereum and one-third of the total ETH held by exchanges.
Total holdings: According to strategic ETH reserve data, 71 fund management companies focused on ETH hold 3.57 million ETH, valued at $16.68 billion. This accounts for about 2.95% of the total supply, highlighting that these enterprises and institutional participants are steadily increasing their share in Ethereum. If the planned acquisitions are implemented, the treasury's holdings of Ethereum could rise to about 10% of the total supply.
- Market structure changes: Bitcoin's dominance declines, altcoin search volume soars
The backdrop of massive funds flowing into Ethereum is that the structure of the crypto market is undergoing significant changes.
Bitcoin's dominance recedes: Bitcoin's share of the entire cryptocurrency market has declined to 60% after peaking in midsummer. Historically, this threshold indicates that capital is beginning to shift towards larger market cap altcoins like Ethereum, Solana, and Ripple. The institutional market also seems to be experiencing a similar rotation.
Soaring altcoin search volume: Google searches for "altcoin" have reached their highest level in five years, comparable to the interest level at the time of Ethereum's inception. This surge aligns with the changes in market structure. Although search data is not a direct measure of trading activity, past cycles indicate that a surge in retail interest often coincides with the initial stages of an altcoin rebound.
Funds flowing into altcoins: CoinShares reported that in late July, weekly inflows into digital asset investment products reached a record high of $4.39 billion, with Ethereum inflows amounting to $2.12 billion, nearly double the previous single-week inflow for the asset.
Widening altcoin volatility: Data from Kaiko in the first quarter also shows that the volatility gap between altcoins and Bitcoin is widening, a structural characteristic commonly seen in the early stages of previous altcoin markets.
- Altcoin cycle signals: Alignment of historical patterns and current trends
The current phenomena of heightened search interest, declining Bitcoin dominance, increased inflows into non-Bitcoin products, and rising leverage usage in altcoin trading venues are similar to the conditions before major altcoin cycles in 2017 and 2021.
Sustainability: The sustainability of this trend will depend on whether Bitcoin consolidates near its peak or re-establishes its dominance. Historically, if Bitcoin's price breaks through around 60% dominance, its decisive action will weaken the superior performance of altcoins, while sustained price fluctuations in Bitcoin may create favorable conditions for further entry into the broader altcoin market.
Conclusion:
Vance Spencer's stunning prediction reveals the grand plan of giants like BitMine and SharpLink potentially swallowing $20 to $40 billion in ETH by 2025. This largest active capital injection in DeFi history suggests that the Ethereum market will welcome an unprecedented liquidity wave. Against the backdrop of Bitcoin's declining dominance and soaring altcoin search volume, Ethereum is expected to ignite a new DeFi bull market, fundamentally changing the landscape of the crypto market. Investors should closely monitor the funding movements of these giants to seize the enormous opportunities within the Ethereum ecosystem.
Related reading: Driven by ETF and treasury trends, Google search volume for "altcoin" reaches a new high since 2021.
Original article: “BitMine and SharpLink may swallow $40 billion ETH by 2025!”
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