๐ July 28 | Wall Street
๐ง The rise of corporate "Ethereum treasuries" could have a dark side. While the ecosystem is celebrating large companies buying millions in ETH, a new report from Bernstein, one of Wall Street's most influential analyst firms, issues a warning: this phenomenon could distort the market and create a false narrative of institutional demand.
In other words, what appears to be a sign of mass adoption could be a smokescreen, driven more by marketing and speculative expectations than by real fundamentals. Are we facing a new silent bubble in the Ethereum narrative?
๐ Snapshot of the Phenomenon: Who Is Buying ETH and Why?
The report published by Bernstein on July 28 warns that the growing number of companies announcing multi-million dollar purchases of ETH as part of their โcorporate treasuriesโ may not reflect genuine or sustainable interest.
Among the report's key observations:
Not all companies are using ETH for payments or real development, but rather storing it as a speculative asset.
Some purchases are backed by credit lines or complex financial mechanisms, not operating income.
A โreflexive cycleโ risk is mentioned: the price rises because companies buy, and companies buy because the price rises, creating an inflated narrative.
โWhat we are seeing is not exactly a sign of real use of Ethereum as a technology, but rather a way to take advantage of market momentum,โ Bernstein says in the report.
In recent weeks, we have seen headlines about GameSquare, Upexi, Mill City Capital, and other corporate entities allocating hundreds of millions of dollars to ETH or Ethereum-based tokens. But Bernstein suggests that these actions could be fueling an illusion of institutionalization rather than actual utility-based adoption.
Furthermore, the firm notes that while Ethereum remains a leader in decentralized infrastructure, the "ETH as a corporate reserve" narrative still lacks solid support in accounting, regulatory, or functional terms.
The report concludes with a call to investors not to be carried away solely by the euphoria of the announcements, but to closely analyze the true purpose and sustainability of these purchases.
Topic Opinion:
Ethereum is on the radar of large companies. It's a clear sign that the crypto narrative has moved beyond technical niches. However, I think Bernstein's analysis is a timely and necessary wake-up call.
Real adoption is built on utility, not press releases. It's not enough to see companies buying ETH: we must look at why they do it, how they integrate it, and what real impact they have on the ecosystem.
๐ฌ Do you think these corporate purchases are artificially inflating the price of ETH?
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