Daily Update: Tom Lee Accumulates Over 1 Million ETH in Record Time
In the ever-evolving world of cryptocurrency, a significant shift has been observed in the past few weeks, with major players increasingly investing in Ethereum (ETH).
The Qubic mining pool group has launched a 51% attack on Monero, but the focus seems to have shifted towards Ethereum as BTCS, the first TreasuryCo, added 3 Pudgy Penguins to its ETH Corporate Treasury. This move is part of a larger trend, as Joe Lubin's SharpLink and Tom Lee's BitMine are also accumulating ETH, with BitMine now holding 1.15M ETH, approximately $5 billion, making it the world's largest corporate Ethereum holder.
The rapid accumulation of ETH by these players is having a significant impact on the market. Each purchase takes ETH off the market, adding credibility to ETH as a corporate reserve asset. Stripe and Circle, two notable companies, are also joining the bandwagon, building their own L1 blockchains, 'Tempo' and 'Arc' respectively.
The increase in ETH holdings was achieved through significant purchases. Over the past week, SharpLink invested nearly all recently raised funds into ETH, accumulating over 728,000 ETH, valued at more than $3.2 billion. In a similar vein, Tom Lee aims to acquire 5% of ETH's circulating supply, which would amount to $25 billion at current prices.
The staking yield, DeFi, and composability of Ethereum are being highlighted as giving it a cash-flow edge over Bitcoin. This edge is evident in the performance of ETH, which has greatly outperformed Bitcoin in ETF inflows over the past 3 weeks, and in the success of projects like Hyperliquid, which is now averaging $3.3M in profit per day.
The ETH thesis is gaining traction, with Wall Street analysts discussing it on CNBC. Notable ETH NFT leaders, such as ETHZilla (ATNF) and Moonbirds, have seen significant growth, with ETHZilla pumping 50% after Peter Thiel disclosed a 7.5% stake in the ETH TreasuryCo. Moonbirds and Mythics were also notable top movers.
In the NFT sector, Abstract NFTs were mostly green, led by Bearish (+15%), while memecoin leaders were mostly red on the day. Plasma partnered with Pendle to make yield available to everyone, everywhere, and Safety Shot announced a $25M raise to build a BONK treasury.
The trend towards Ethereum is not without its challenges, however. Do Kwon is expected to plead guilty to charges related to Terra's collapse in 2022. Heritage Distillery announced $360M in financing to build an IP treasury, and ALT5 announced a $1.5B offering to build a WLFI Treasury.
Despite these challenges, the trend towards Ethereum as a corporate asset continues, with SWIF being the biggest SOL mover, up 75% to $29M. Gondi shared a new record TVL of $120M with $60M in active NFT loans. Paxos applied for a national trust charter with the OCC to expand its operations nationwide.
As the shift towards Ethereum continues, it remains to be seen how this trend will shape the future of the cryptocurrency market.
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