Ethereum Institutional Interest Could Drive Sustained Demand Amid Supply Constraints and Market Evolution

Key Points

1. Institutions have accumulated approximately 2.83 million ETH since mid-May, 32 times greater than new ETH issuance.

2. Projections suggest institutions could purchase around 5.33 million ETH (valued at ~$20 billion) in the next year, far exceeding the anticipated issuance of 800,000 ETH.

3. Ethereum hosts leading stablecoins like USDT and USDC, linking stablecoin transaction growth to ETH demand via gas fees.

4. Real-world asset (RWA) tokenization on Ethereum enhances ETH utility by enabling fractional ownership and new institutional investment opportunities.

5. Ethereum's stablecoin supply hit a record $140 billion in July 2024, reflecting its growing role in financial ecosystems.