• The acquisition of Ethereum treasury has drastically declined by 81% since the month of August, which indicates a quick unwinding of positions.
• Bitmine leads in Ethereum holdings surpassing all the treasury companies combined, thus making it a winner-takes-most scenario.
• Decreased mNAVs, reduced purchases, and steady supply are all contributing factors to the weakening structural bid for Ether.

Ethereum seemed poised to lead a bold new chapter in crypto finance. In the heat of summer, investors believed they were witnessing the dawn of a new era. Companies began adding Ether to their balance sheets, mirroring the much-celebrated Bitcoin treasury strategy. Optimism surged. Analysts talked excitedly about a renewed altseason powered by corporate demand.

However, the Ethereum treasury boom is now looking like a tale that has been abruptly ended. The statistics reveal the reality very clearly. In November, treasury purchasers purchased only 370,000 Ether which is a very harsh and significant decrease of 81% from the highest point of August with 1.97 million. The fall is sharp, fast, and heavy. What was meant to ignite a new cycle now is perceived as an echo that has already faded away.

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Great Unwind of Ethereum

According to Max Shannon of Bitwise, it is an unwind, and the process has already started. He was a spectator to the same sequence of events during previous cycles: thrill, copying, and finally, weakening. When more options come into the picture, the same amount of money has to be divided into smaller and smaller portions. Consumer interest cannot last.

The calculation is not complicated but quite harsh. Approximately 80,000 new ETH gets minted by Ethereum every month. The number of treasury purchases which were made until just recently surpassed this figure with a great margin. Now the gap is decreasing quickly.

The demand for purchases is still greater than the supply, albeit by a small amount. And when the lines meet, the bidding support that has been present in the market disappears.

The weight of the situation is already visible. mNAVs are decreasing. The buying of coins is going down. The premiums are shattering. The small treasury firms that have lost their purchasing power are on the brink of going out of business. Their model is being crushed by the disappearing capital.

Ethereum’s Winner-Takes-Most Reality

Bitmine, the giant of the treasury that was previously a miner, has turned out to be the rock-solid mountain in this entire scenario. The company, under the leadership of Tom Lee, has now amassed more than 3.73 million Ether, which is roughly equivalent to $13 billion, outstripping by a large margin all the other treasury firms put together. It has a size four times that of the next competitor. Everything revolves around it like planets around the sun which lights them just with its faint rays.

Shannon is convinced that the merger and acquisition trend involving the principal players in the industry will become stronger, enhanced by a very harsh and very strong cycle of dominance in which the leading firms gain access to low-cost capital, increase their ETH holdings significantly and attract even more external interest, and repeating the cycle without much difficulty.

On the other hand, the smaller companies keep lagging more and more at the same time that their premiums are reduced, their fundraising activities become more and more dilutive, and their market positioning becomes more and more vulnerable. They try to follow the prices when they increase but when the power of the market decreases, they are the first to go bankrupt.

The Ethereum treasury boom was initially seen as a major force that would trigger a widespread movement. However, it now seems that there is an actual battle with just one real winner, and a long list of companies that are quietly fading away.

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