Amid a high investor interest in cryptocurrency markets, there is a significant rise in demand for digital assets, leading to a shortage in Ethereum supply.
Historic Ethereum Supply Shortage
Delta Blockchain Fund founder and general partner Kavita Gupta commented on the current market situation. She noted that $500 million worth of new digital assets recently entered the market, and over $4 billion is being prepared to purchase Ethereum. Gupta stated, 'For the first time in market history, we are experiencing a serious supply shortage in the amount of ETH that can be purchased.'
Trends in Digital Assets and Risks
Gupta highlighted that this trend is not limited to Ethereum. Companies are also adding Solana and other digital assets to their balance sheets, similar to MicroStrategy's Bitcoin strategy. 'Demand is high, and billions of dollars are flowing into these assets. However, this could turn into a new pump-and-dump cycle on Wall Street,' she added.
Future of Stablecoins and IPOs
Gupta predicts that, in addition to Circle, major companies like Robinhood, Facebook, and Instagram could launch their own stablecoin projects within the next year and a half. She also noted that banks and fintech companies have shown significant interest in developing their own stablecoin payment and settlement platforms, with as many as 20 initial public offerings likely in this area.
In the growing interest in digital assets and the changing market, it is important to understand the potential risks and opportunities that may arise in the near future.
