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\n\t\t\t\t\t\t\t\t\tEthereum digital asset treasury SharpLink is confident that institutional adoption is increasing despite bearish spot prices.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The last few months have been volatile for the price of ETH, the company stated on X on Wednesday.\u00a0The asset has consolidated around bear market lows of $2,000 since the beginning of February and has yet to make any move to pre-crash levels.<\/p>\n
Nevertheless, \u201cthe structural indicators of long-term institutional adoption of Ethereum continued to build,\u201d stated SharpLink.<\/p>\n
Sharplink Gaming is the world\u2019s second-largest Ether DAT with 863,000 ETH worth around $1.89 billion. However, it has not made any further significant purchases since October 2025.<\/p>\n
The firm highlighted several key metrics for its thesis, including continually increasing total value staked.\u00a0Staking deposits have not slowed through bear markets, including a 50% price drawdown from the 2025 peak, it stated. There are currently 38.7 million ETH staked, worth around $89 billion, and equating to 32% of the total supply.<\/p>\n
\n\u201cConviction in Ethereum\u2019s yield layer is compounding regardless of price.\u201d<\/p>\n<\/blockquote>\n
Additionally, long-term holders did not flinch at the bear market drawdown, with every cohort holding ETH for more than six months holding its position through the recent volatility.<\/p>\n
It also observed that short-term ETH holders were at breakeven with an MVRV sitting at 1.0, which indicates \u201crecent buyers have no meaningful profit to sell, and loss-cutters have cleared out.\u201d<\/p>\n
\n\u201cAt the same time, exchange balances have fallen to 15 million ETH, a multi-year low. Less ETH available to sell. Less incentive to sell it. That is a supply constraint.\u201d<\/p>\n<\/blockquote>\n
Meanwhile, US spot ETH ETF flows turned positive in April after several months of net outflows as investors poured back into regulated ether products, even during a month that included a major DeFi exploit, it stated.<\/p>\n
You may also like:<\/h3>\n
\nThe last few months have been volatile for the price of ETH. But in parallel, the structural indicators of long-term institutional adoption of Ethereum continued to build.<\/p>\n
A look at the data. \ud83e\uddf5<\/p>\n
\u2014 Sharplink (@Sharplink) May 12, 2026<\/a><\/p>\n<\/blockquote>\n
SharpLink also noted Ethereum\u2019s dominance in real-world asset tokenization, and this week\u2019s news that BlackRock said it would begin tokenizing an existing multibillion-dollar money market fund on Ethereum. Also this week, JP Morgan announced<\/a> the launch of a second tokenized money market fund on Ethereum.<\/p>\n
\u201cThese are not separate trends. They are the same story told in different ways,\u201d stated SharpLink.<\/p>\n
\n\u201cAsset managers tokenizing on-chain choose Ethereum. Stablecoins settle on Ethereum. Autonomous agents operate on Ethereum.\u201d<\/p>\n<\/blockquote>\n
Meanwhile, Mike Novogratz\u2019s Galaxy and SharpLink launched<\/a> a $125 million Ethereum-powered DeFi yield fund this week.<\/p>\n
Not Reflected in ETH Prices<\/h2>\n
Despite these solid fundamentals, spot Ether prices are still deflated.\u00a0ETH fell back to its lowest level for almost two weeks, just above $2,250 in late trading on Tuesday, following the US CPI print and increase<\/a> in inflation.<\/p>\n
It managed to recover to just below $2,300 during Asian trading on Wednesday, but failed to break above it at the time of writing.<\/p>\n
The asset has been tightly range-bound for the past month and remains almost 54% down from its all-time high in August 2025, so those institutional adoption fundamentals are not being reflected in spot markets yet.<\/p>\n
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