In this issue of Coin Metrics’ State of the Network, we examine the observed impacts of ETH digital asset treasuries on Ethereum’s supply dynamics and explore the potential network implications as these large vehicles move on-chain.
Key Takeaways
- ETH-focused digital asset treasuries are rapidly scaling, with 2.2M ETH (1.8% of supply) accumulated in just two months, creating a supply-demand imbalance.
- These treasuries are taking an active on-chain approach, aiming to deploy capital through staking and DeFi to enhance returns while supporting network security and liquidity.
- While still in the accumulation phase, greater on-chain participation could strengthen Ethereum’s liquidity and security but also heighten its exposure to corporate treasury risks.
Brought to you by coinmetrics.io
