Ethereum treasuries collapse 80% as the trade unwinds, Bitwise warns

Core Insights - The Ethereum treasury boom is experiencing a significant decline, with purchases dropping 81% from August's peak of 1.97 million Ether to just 370,000 in November [1][5] - The trend mirrors previous cycles where the demand for alternative cryptocurrencies cannot be sustained by the same pool of capital [2] - Bitmine, a leading player in Ethereum treasury purchases, holds over 3.73 million Ether, significantly more than its competitors [6] Treasury Purchases - Ethereum treasury purchases peaked in August at 1.97 million Ether but fell to 370,000 in November, indicating a substantial decline in interest [5] - The monthly supply of new Ether remains constant at approximately 80,000, suggesting that while purchases still exceed supply, this gap is closing rapidly [5] Market Dynamics - The current market scenario is characterized by a "winner-takes-most" dynamic, with Bitmine dominating the Ethereum treasury space [3][6] - The structural bid for Ether may disappear if treasury buying continues to decline while supply remains constant, leading to falling market-cap-to-net-asset-value multiples [4] Future Outlook - The ongoing decline in treasury purchases is expected to impact the overall demand for Ether, as the gap between purchases and supply is shrinking [5] - The situation reflects a broader trend in the cryptocurrency market, where the emergence of alternatives leads to a redistribution of capital [2]