Ethereum’s Treasury Department is rapidly accumulating more than 3% of its circular ETH, winning a bet that Bitcoin’s Treasury Department cannot.
Bitcoin’s Treasury is busy and faces consolidation, while Solana’s Treasury remains small.
Analysts consider Ethereum to be a frontrunner due to its scale, staking yields and pre-approved purchasing strategies.
Ethereum’s Treasury Department is in the spotlight, and everyone is talking about them.
Publicly listed companies have been piled up on ETH and have scooped up a significant supply chunk since June, worth more than $16 billion. And these holdings are earning ridiculous rewards, giving Ethereum a difficult advantage to ignore.
The discussion spilled on Reddit. There, one post summarised it up. “Since June, ETH’s finances have scooped up about 3% of the circulation supply. That’s a lot of coins parked. Kickers can’t do BTC Treasuries.”
Why Ethereum looks stronger
According to Standard Chartered, Ethereum’s finances are better suited to survive market slump than Bitcoin and Solana. The 12 companies led by Bitmine and Sharplink currently hold more than 3.5 million ETH.
One reason is the scale, but the major difference is that it reduces the yield. The Ministry of Finance, which holds ETH, will earn continuous rewards. This is a stable income stream that Bitcoin does not offer.
Analysts say that as weaker players drop out, they will give Ethereum’s Treasury more energy to stay.
Bitcoin finances are busy
Bitcoin’s Treasury Department remains dominant, with 120 entities holding around 1.5 million BTC worth $176 billion, which is about 7% of the total supply. But the trade has now saturated.
This strategy was pioneered by Michael Saylor’s company strategy. The Michael Saylor strategy used debt and stock sales to buy BTC. Dozens of companies have copied the models and increased their reputation. At one point, the strategy was traded at more than three times the value of its holding. Today, the premium has only been reduced by 1.3 times.
Standard Chartered calls it a case of “too many copycats.” Consolidation is likely and large companies will likely acquire small companies, but that is just a turnover and not new demand.
Solana is still catching up
Solana Treasuries is much smaller, with only nine companies holding 13.4 million companies worth $3.32 billion, about 2.5% of total supply. Staking is available, but institutional adoption is not at the same level as Ethereum.
There are also hurdles. Standard Chartered flagged Nasdaq that it may immediately require the company to obtain shareholder approval before making a new crypto purchase.
Shake out first
Analysts warn that the Treasury of Digital Assets is entering the “Player vs. Player” phase. A decline in valuation means that only companies with cheap capital, size and staking yields survive. Ethereum checks all three boxes.
Geoff Kendrick of Standard Chartered says: “We believe ETH and SOL DAT need to allocate higher MNAV than BTC data to multiply the yield.”
However, Solana is still small, so Ethereum has emerged as a front runner. Bitmine alone has over 2 million ETH, more than $9 billion, and is still buying it.
There is no more number 2
Between Reddit chatter, aggressive financial purchases and analyst reports, a clear picture is formed. Bitcoin’s finances could grow bloated. Solana is still climbing the ladder. And Ethereum has built its own lanes defined by size, utility and yield.
For the institution, the mix proves difficult to resist.
