Ethereum News Today: Ethereum Faces Historic Supply Shortage as Institutional Demand Surges

Ethereum is currently facing a historic supply shortage driven by a sharp increase in demand, particularly from institutional investors, which is creating a structural imbalance in the market. According to Kavita Gupta of Delta Blockchain Fund, over $500 million in new digital asset treasuries have recently entered the market, with more than $4 billion in funds set to purchase ETH, marking the first time such a supply shortage has been observed [1]. The growing appetite for Ethereum is not isolated to ETH alone, as companies are also adding Solana and other cryptocurrencies to their balance sheets, mirroring strategies previously taken by firms like MicroStrategy with Bitcoin [2].

This surge in demand is reflected in Ethereum ETF inflows, which saw over $1 billion in new capital on a single day, pushing total ETF assets above $10 billion [3]. The strong institutional interest underscores confidence in Ethereum’s potential to outperform traditional assets. Ethereum’s price has been trading near $4,650, close to its all-time high of $4,900 [4], with over 97% of holders currently in profit, reinforcing a bullish market sentiment. Technical indicators suggest a potential breakout, which could trigger further buying pressure.

Looking ahead, Ethereum’s Pectra upgrade in May 2025 is expected to enhance the network’s scalability and security, positioning it as a more attractive long-term investment [5]. The increased institutional adoption of Ethereum is also altering the broader crypto landscape, with liquidity shifting toward DeFi platforms as investors seek higher returns [6]. Meanwhile, Ethereum’s rising popularity has led to a slight decline in Bitcoin’s market dominance, which dropped from 59.9% to 58.7% in a single day [7].

Price projections are also being adjusted in response to these developments. Standard Chartered has raised its 2025 price target for Ethereum to $7,500 and extended its long-term forecast to $25,000 by 2028 [8]. These upward revisions reflect favorable regulatory developments and ongoing network improvements, although analysts caution that the market remains sensitive to macroeconomic and regulatory changes.

The coming weeks will be critical in determining whether Ethereum can maintain its upward trajectory and consolidate its position as the second-largest cryptocurrency. A breakout above $4,900 could attract additional retail and algorithmic trading interest, while a failure to hold that level may lead to short-term profit-taking and volatility.

Source:

[1] CoinMarketCap, [https://coinmarketcap.com/community/articles/689ed184f1d220737b2efe28/](https://coinmarketcap.com/community/articles/689ed184f1d220737b2efe28/)

[2] Bitcoin, [https://en.bitcoinsistemi.com/increased-demand-has-led-to-a-historic-shortage-in-ethereum-eth-supply-so-what-happens-now/](https://en.bitcoinsistemi.com/increased-demand-has-led-to-a-historic-shortage-in-ethereum-eth-supply-so-what-happens-now/)

[3] CoinMarketCap, [https://coinmarketcap.com/academy/article/what-happened-in-crypto-today](https://coinmarketcap.com/academy/article/what-happened-in-crypto-today)

[4] The, [https://m.economictimes.com/crypto-news-today-live-14-aug-2025/liveblog/123288029.cms](https://m.economictimes.com/crypto-news-today-live-14-aug-2025/liveblog/123288029.cms)

[5] AInvest, [https://www.ainvest.com/news/time-buy-crypto-dip-leveraging-healthy-corrections-institutional-resilience-structurally-bullish-market-2508/](https://www.ainvest.com/news/time-buy-crypto-dip-leveraging-healthy-corrections-institutional-resilience-structurally-bullish-market-2508/)

[6] AInvest, [https://www.ainvest.com/news/ethereum-news-today-steth-depeg-risks-trigger-3-28-billion-exit-queue-defi-liquidity-shift-2508/](https://www.ainvest.com/news/ethereum-news-today-steth-depeg-risks-trigger-3-28-billion-exit-queue-defi-liquidity-shift-2508/)

[8] Coinglass, [https://www.coinglass.com/ru/news/533039](https://www.coinglass.com/ru/news/533039)