What to Know:
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ETH demand from institutions is outpacing sell pressure from unstaking.
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U.S. firms already hold nearly $20B worth of ETH that is 3.39% of its total supply.
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ETH market cap could surpass BTC in the next 1–2 bull-bear cycles.
A new report from Trend Research, part of LD Capital’s investment team, predicts that Ethereum may overtake Bitcoin in market capitalization within just one to two bull-bear cycles. Let’s break down what’s behind this bold forecast—and what it could mean for crypto investors.
Supply vs. Demand
According to analysis, every time Ethereum’s price dips, talks of ETH “unstaking” rise, meaning people are pulling their ETH out of staking and making it available to sell. But the report says the actual supply released from unstaking is far less than the demand coming in. This mismatch continues to push the price up.
Large crypto treasury firms, like SharpLink, have begun buying ETH in doses far beyond what unstaking alone could supply. As of now, U.S.-listed companies collectively hold nearly $20 billion worth of ETH, which is about 3.39% of the total supply. One big player, Bitmine, is reportedly just 25% away from its goal of owning 5% of ETH.
ETF Inflows and Cash Flow
Another boost for Ethereum lies in its built-in earning mechanisms. Since merging to proof-of-stake in 2022, staked ETH has started generating interest, giving it an income-producing quality. On top of that, DeFi activity like helping provide liquidity brings more return on ETH holdings.
Some ETH treasury companies earn estimated annual returns of around 5%, combining staking yield and DeFi income. Meanwhile, ETH-based ETFs are seeing strong cash inflows over 14 straight weeks of net investment, including a huge push of $2.85 billion in a single week.
Wall Street Counts on ETH
The report shows that more and more institutions and regulators agree that Ethereum has value in the long run. The environment may get even better if interest rates go down as expected. Trend Research thinks that ETH is the best trade because lower rates often make investors want to buy riskier assets like crypto.
As these institutional flows grow and more policies become crypto-friendly, Trend Research raised its long-term ETH price target. At this pace, ETH’s total market value could eclipse Bitcoin’s within next one to two market cycles.
ETH vs. BTC
Bitcoin is the OG cryptocurrency and is still the most loved, but Ethereum has some benefits that BTC doesn’t. ETH is more than just a store of value; it also powers smart contracts, DeFi platforms, NFTs, and a lot of other blockchain apps. This usefulness gives it a strong base that Bitcoin doesn’t have.
Staking and DeFi activity also make Ethereum money, which makes it a good investment. As more institutions, such as ETFs and treasury holders, want ETH, it is seen as more flexible. Bitcoin’s supply is tight, but it doesn’t offer as many ways to make money. Ethereum, on the other hand, has a growing edge because it is both useful and can make money.
What Could Go Wrong?
ETH still has a lot of problems to deal with. Market cycles have a big effect on its growth, so any downturn could quickly stop it in its tracks. Changes in policy are also very important. For example, stricter rules or a change in the government’s position could affect how confident people are in the crypto markets.
At the same time, institutional buying which has been a major driver of ETH’s rise, may not continue at the same pace. History also shows that Bitcoin continues to dominate overall crypto sentiment, and a sharp swing in investor mood could easily help BTC maintain its lead despite ETH’s progress.
Final Thoughts
Trend Research’s view isn’t just wishful thinking it’s rooted in real developments: institutional demand, ETH’s yield features, ETF inflows, and a favorable macro backdrop. If those trends continue, we may indeed see Ethereum, once considered a “second-place” crypto, rise to surpass the original king Bitcoin.
The next one to two bull-bear cycles could define a turning point in crypto history. Pay attention.
Also Read: Gemini Tops Coinbase on App Store After XRP Mastercard Launch
