Ethereum Buying Frenzy Sparks Talk of Looming Supply Shock

Ethereum

Ethereum Buying Frenzy Sparks Talk of Looming Supply Shock

Institutional appetite for Ethereum is heating up, with corporate treasuries quietly accumulating massive amounts of ETH while the broader crypto market hits new highs.

According to entrepreneur Kyle Reidhead, at least ten treasury-focused firms have snapped up over 550,000 ETH—worth $1.65 billion—in just the past month. He says the demand is not only relentless, but accelerating, with newcomers entering weekly and existing buyers upping their targets. If the current pace continues, ETH purchases could exceed $2 billion in the coming month.

Unlike ETFs, these treasury firms are not selling. Instead, they’re locking ETH into DeFi platforms, staking, or simply holding long-term—moves that could severely tighten supply. Reidhead warns this accumulation could soon trigger a serious supply crunch.

Supporting this outlook, spot Ethereum ETFs have now posted nine straight weeks of inflows, with nearly $1 billion added just last week. Exchange reserves are also thinning, indicating fewer tokens are available for trading.

This surge in institutional interest coincides with major policy developments in the U.S., where lawmakers are weighing three digital asset bills during the so-called “Crypto Week.” Positive regulatory moves could further boost corporate confidence in ETH.

At the time of writing, ETH is hovering around $3,018, but if the current buying pressure continues, that price may not hold for long.

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Kosta Gushterov

Reporter at Coindoo

Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.

Source: https://coindoo.com/ethereum-buying-frenzy-sparks-talk-of-looming-supply-shock/