Recently, on-chain data has revealed super intense information. In the past 30 days, the ETH buying volume from Ethereum strategy entities, hedge funds, market makers, asset management giants + ETFs, was actually 47 times the net issuance of the network! This set of data not only exposes the supply-demand gap but also the institutional bulldozer-style frenzy for ETH.
First, let’s break down the core logic: what is net issuance?
After the Ethereum merger, the PoS mechanism has caused a drastic drop in issuance, coupled with EIP-1559 burning transaction fees, the net issuance = issuance - destruction. If negative, ETH enters deflation, destruction > issuance; if positive, it remains inflationary. But regardless of whether the net issuance is positive or negative, the 47 times buying pressure is declaring the same signal: institutions are chewing and swallowing the new supply!
Institutions entering the market completely rewrites the rules of the game. The combination of strategy entities + ETFs hides two layers of deep meaning.
ETF = A compliant channel for traditional capital. Although the US spot ETH ETF has not landed, funds have already preemptively bet on grayscale GBTC, Bitwise, and other products swirling beneath the surface. Traditional institutions are crazily hoarding coins through curved entry.
Strategy entities = the predatory operations of quantitative and hedge funds. These players use algorithms to track on-chain signals. Once they discover supply scarcity, they immediately switch to siphoning mode. They are not buying short-term volatility, but rather the long-term dominance of ETH as the cornerstone of Web3.
Ethereum's ace assisting ecology + deflationary double buff.
On one side is institutional buying, and on the other side is ETH's own fundamentals beating the air. The Cancun upgrade is imminent, and Layer 2 performance will leap again. As the Layer 1 core, ETH captures the value of the entire ecosystem.
The deflationary model continues to strengthen. If net issuance remains negative for a long time (destruction > issuance), ETH will enter a spiral of becoming scarcer as it rises, and rising as it becomes scarcer. Institutions are currently buying, essentially betting on a double premium of deflationary assets + ecosystem leaders.
The crypto space has never lacked the drama of the wolf coming, but on-chain data never lies. When institutions prove their faith with 47 times buying pressure, do you dare to follow the trend, or are you afraid of catching the high?
Subsequent deep dive into institutional holding codes + on-chain top signal. Do you think this wave is the starting point of a long bull market, or a trap to lure more buyers?
Click to comment: 1. Let’s make a fortune together in this bull market.
