As Ethereum trades around $2,944, a level notably below its August peak, a significant shift is unfolding behind the scenes. The current consolidation phase is being aggressively used by institutional investors and corporate treasuries to expand their holdings. A growing chasm between stagnant prices and robust underlying metrics raises a critical question: how long can the market overlook this divergence?

Network Strength Amid Price Consolidation

Beyond capital flows, the Ethereum network itself demonstrates considerable vigor. December saw one of the year’s most substantial surges in new wallet creation. According to data from Santiment, network activity climbed by 25% compared to November.

The year 2025 also marked a technological milestone with two major upgrades. The “Pectra” upgrade in May was followed by the “Fusaka” update in December, which delivered critical improvements. The Fusaka enhancement is particularly significant for further reducing Layer-2 network costs and advancing scalability.

The Great Accumulation

The most conspicuous trend in late December 2025 is an unprecedented accumulation by large-scale investors. Reports indicate corporate treasuries and spot ETFs now control nearly 11% of the circulating supply. This movement is spearheaded by BitMine, led by Tom Lee. On December 23 alone, the firm purchased an additional $88 million worth of ETH, cementing its position as the world’s largest corporate holder of Ethereum.

BitMine’s treasury now holds over 4 million ETH, representing 3.36% of the total supply, with an expressed goal of reaching 5%. This strategy underscores the long-term conviction of institutional players, who increasingly view Ethereum as essential financial infrastructure, irrespective of short-term price volatility.

Should investors sell immediately? Or is it worth buying Ethereum?

Regulatory Tailwinds for the Coming Year

A pivotal factor for 2026 will be the evolution of the ETF landscape. The SEC’s clarification in May 2025 that staking does not constitute a securities transaction has cleared the path for yield-generating products. Financial giant BlackRock has already filed an application for an “iShares Staked ETH ETF.” Year-to-date, Ethereum ETFs have seen net inflows of approximately $12.7 billion.

An Impending Supply Shock

The aggressive buying from major investors coincides with a steadily declining available supply. Just 10.5% of all ETH now sits on centralized exchanges—one of the lowest levels since the network’s launch and a 43% drop since July.

Simultaneously, more than 35.6 million ETH is locked in staking contracts, accounting for nearly 30% of the total supply. This constriction of freely tradable coins could act as a potent catalyst for price appreciation should broader demand return.

Ethereum enters the new year with fortified fundamentals and a historically tight supply. While the price continues to seek a firm base, the institutional groundwork has already been laid in the background. Should macroeconomic conditions prove favorable, 2026 could see potentially rising demand meeting a more constrained supply than ever before.

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