The supply of Ether (ETH) is under intense pressure with about 40% withdrawn from circulation, creating a potential price surge as institutional interest grows. Analyst Crypto Gucci highlighted that Ethereum has not encountered a market cycle where all three primary supply vacuums operate simultaneously.

“When demand meets a shrinking supply like this, price doesn’t just go up, it goes nuclear.”

Gucci explained that digital asset treasuries (DATs) are responsible for hoarding approximately 5.9 million ETH worth about $24 billion. He noted that such entities did not exist during the previous market cycle. Furthermore, Ether ETF inflows have added 6.84 million Ether (valued at $28 billion) to the market.

In the current market, 35.7 million ETH valued at around $146 billion is staked, significantly limiting liquid supply. With ongoing demand and the absence of liquid assets, analysts forecast significant price increases.

Ted Pillows also remarked on the institutional appetite for ETH, predicting potential prices ranging from $8,000 to $10,000 this cycle. Meanwhile, Ryan Sean Adams commented on the Kingdom of Bhutan’s plans to integrate its national ID system on Ethereum, emphasizing that without actual Ether reserve accumulation, Ethereum’s ultimate potential could remain unfulfilled.