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Ethereum Purchases Fell by 81% in November — Bitwise
According to experts, the slowdown in buying activity of the second-largest cryptocurrency by market capitalization has continued for the third consecutive month.
“Companies holding digital assets on their balance sheets have become the embodiment of the alt-season in this cycle. We are now observing the same pattern as before. As more alternatives emerge, the same pool of capital can no longer satisfy the growing demand,” Bitwise explained.
BitMine Immersion Technologies showed the highest level of activity and continues to lead the sector. The company purchased 23,773 ETH, bringing its total balance to 3.73 million. It now controls 3.08% of all coins.
Bitwise also noted signs of a collapse in the model of accumulating cryptocurrency on company balance sheets. Smaller players are facing the threat of exiting the market. Although the purchases of such companies still exceed the net monthly issuance of 80,000 coins, this gap is rapidly closing.
If corporate accumulation continues to decline at the current pace while supply remains unchanged, the structural demand for Ethereum will disappear. In such conditions, reaching new all-time highs will be difficult, the experts concluded.
Earlier, analysts from the data platform CryptoQuant said that Ethereum’s drop to the support level of $2800 may indicate the bottom of the market cycle. Large holders of the second-largest cryptocurrency continue accumulating the asset despite the price correction.
See also: "Coinbase Institutional: Here’s What Is Limiting Bitcoin’s Rise to $100,000"
