Ethereum (ETH) is under short-term price pressure, but on-chain data shows that the network's foundation remains extremely strong, with DeFi dominating and exchange supply decreasing as institutions increase their buying.
Notably, price behavior and investor behavior are diverging. Ethereum holds most of the DeFi and stablecoin liquidity, while ETH withdrawals from exchanges are reducing the available supply for sale. If buying pressure continues to defend the support area, this gap may quickly narrow.
MAIN CONTENT
Ethereum accounts for approximately 68.2% of global DeFi TVL and is the preferred payment layer for stablecoins.
Institutional cash flow is increasing, consisting of large acquisition deals and leverage strategies through DeFi.
The ETH supply ratio on Binance has dropped to 0.032, increasing the likelihood of a 'supply shock' forming.
Ethereum is dominating DeFi and stablecoins
Ethereum currently holds about 68.2% of the total value locked (TVL) in global DeFi, while also storing a significant amount of stablecoins, reinforcing its role as a core payment infrastructure in the cryptocurrency ecosystem.
The network holds nearly 68.2% of global DeFi TVL, with over 69 billion USD deployed across smart contracts. This scale surpasses the total capital on Solana (SOL), Tron (TRX), BNB Smart Chain (BNB), Bitcoin (BTC), Avalanche (AVAX), and other chains when combined.
Ethereum's advantage lies not only in DeFi. The network also holds over 191 billion USD in stablecoins and controls half of the tokenized euro market. For institutions, this is important because stablecoins are often issued in places with high levels of security and reliability, and Ethereum remains the preferred payment layer.
Institutions are increasing their ETH purchases even as the market remains cautious
Despite ETH prices being under pressure, institutional investors are increasing their exposure, as shown by large acquisition deals and strategies to incorporate ETH into DeFi to optimize positions.
In the past 24 hours, Tom Lee's Bitmine has purchased nearly 68,000 ETH, worth over 200 million USD. This is a signal of large cash flows participating in a hesitant market.
Fasanara Capital is also following a similar path, buying ETH and then depositing it into DeFi protocols, subsequently borrowing against collateral to buy more. This approach shows that it’s not just passive holding, but an active positioning to expand exposure.
The ETH supply shock may be forming
The available ETH supply for sale on exchanges is decreasing while buying pressure is increasing, creating a scenario for a 'supply shock' if prices hold the support area and demand continues to be maintained.
Buying activity is occurring at a sensitive price point for ETH: the asset is under technical pressure, below key resistance areas, with support near 2,800 USD. If looking solely at the price chart, ETH may appear fragile.
However, the ETH supply ratio on Binance has dropped to 0.032, the lowest level since September 2024. Simply put, there is less ETH on exchanges ready for immediate sale.
In a context where buyers continue to defend the support area, tightening supply could quickly reverse the market narrative. When low liquidity supply meets high demand from institutions, volatility increases may occur faster than expected.
Final assessment
Ethereum is controlling over 68% of DeFi TVL while attracting buying power from institutions even as prices face challenges. If the exchange supply ratio continues to decline and large cash flows are sustained, a recovery driven by supply factors may appear.
Frequently asked questions
How much global DeFi TVL does Ethereum hold?
Ethereum currently holds nearly 68.2% of global DeFi TVL, with over 69 billion USD being deployed across smart contracts.
Why do stablecoins and institutions often prefer Ethereum?
Ethereum holds over 191 billion USD in stablecoins and is considered the preferred payment layer due to security and reliability, which are crucial for institutional stablecoin issuance and payment activities.
What does the ETH supply ratio on Binance dropping to 0.032 mean?
This indicates that less ETH is available on exchanges for sale, potentially tightening liquidity supply. If demand increases or is maintained, the market may face the risk of a 'supply shock.'
What are the notable recent organizational acquisition deals?
Tom Lee's Bitmine has purchased nearly 68,000 ETH worth over 200 million USD in 24 hours. Fasanara Capital also bought ETH and then brought it into DeFi to borrow and buy more, demonstrating an active positioning strategy.
Source: https://tintucbitcoin.com/nha-dau-tu-van-giu-69-ty-usd-defi/
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