- 6.7 Years of ETH Inflation Neutralized as DATs and ETFs have absorbed nearly 6M ETH since April.
- Ethereum whale transactions hit monthly highs as Spot ETFs see record $2.91B weekly inflows.
- With low issuance and shrinking exchange reserves, ETH is primed for an explosive price move.
Ethereum price surged 19.2% in a week despite dropping 2.3% in the last 24 hours to trade at $4,652.07 as of 3:08 a.m. EST on a 12.5% increase in trading volume, reflecting renewed enthusiasm among investors.
Ethereum Heads Into Supply Shock as DATs Neutralize 6.7 Years of Inflation
While Ethereum price courts previous all-time highs, each year, new ETH added to the supply is only about 0.74% of the existing total, which is already very low compared to most assets. Nevertheless, compounding over the years without any outlet, ETH added 5.09% to its total supply.
With the current low 0.74% annual inflation and sub-10 gwei gas prices, the network is not burning vast amounts of ETH via EIP-1559 right now, so supply changes are mostly from issuance.
That is where Decentralised Autonomous Treasuries (DATs) come in. These are on-chain funds, staking protocols, or DAOs accumulating ETH, and since April 2, they have purchased 3.57 million ETH.
Additionally, according to Senior Analyst at Messari, Tom Dunleavy, $27 billion in dry powder (readily available cash or capital that an investment fund has raised from investors but has not yet deployed into investments) has been designated to buy more ETH.
This translates to almost 6 million ETH (or 5% of the total Ether supply or a third of all ETH currently on exchanges). The 3.57M already bought since April is enough to offset 4 years of issuance. With more money left in DATs to make more purchases, and adding the 2.4M Ether already accumulated by ETFs since April, that’s 6-7 years of inflation completely wiped out, clearing the Ethereum price for an explosive move to the upside.
Ethereum Whale Activity Surges to Monthly Highs
Ethereum whale activity is on the rise, according to data from Santiment shared by top crypto analyst Ali Martinez. The whale transaction count hit a new monthly high as the ETH price recorded its highest price since the November 2024-January 2025 bull run.
Meanwhile, data from Soso Value shows Ethereum Spot ETFs raked in a daily total netflow of $639.61, led by BlackRock’s IBIT with $519.68M. As of August 14, ETH ETFs hold $29.22 billion worth of ETH, which comprises 5.34% of the total Ether supply.
What’s more, the weekly ETH Spot ETF inflow hit an all-time high of $2.91 billion, marking 14 consecutive weeks of green.
When long-term holders (like ETFs or DAOs) buy ETH and don’t sell, it takes coins off the market.
Combine low issuance with big, persistent buys → available ETH on exchanges shrinks.
If demand stays steady or rises, this scarcity can cause a supply shock — prices can jump sharply because there’s simply not enough ETH available for new buyers.
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