Following their stealth launch, several Ethereum treasury companies started actively acquiring ETH. Their aim is to attract funds through DeFi protocols, potentially ushering in a new phase in decentralized finance.
Growth of ETH Treasury Companies
Over the course of two months, Ethereum treasury companies have acquired 2 million ETH. Analysts from Standard Chartered forecast that they will add another 10 million ETH in the future. Growing interest in ETH could lead to significant inflows into DeFi protocols, where companies aim to achieve yields above 3-5% from staking.
DeFi Strategies and Their Market Impact
Companies like GameSquare Holdings and BTCS have already announced plans to increase ETH yields through DeFi. GameSquare is targeting 8-14% yields, exploring opportunities in areas such as NFTs, web gaming, and prediction markets. Meanwhile, BTCS employs a strategy based on staking to enhance its earnings.
Risks and New Opportunities in DeFi
Managing assets in DeFi comes with certain risks. Analysts emphasize the importance of a cautious approach and risk management to minimize liquidity risks and protect against potential hacks. However, the adoption of ETH as balance sheet assets by many companies could lead to a broader understanding and integration of DeFi into traditional financial structures.
As we transition into a new phase in DeFi, ETH treasury companies may not only increase their assets but also demonstrate the potential of decentralized finance for institutional investors.
