Bitcoin loses demand while the popularity of Ethereum is growing

Bitcoin (BTC) loses positions in corporate treasury, despite the proximity to historical maximums

Companies are less likely to add bitcoin to their balances, while Ethereum and other altcoins are gaining popularity.

Cryptocators leave BTC to Ethereum and other altcoins

The first cryptocurrency of the world recently moved the record maximums several times. However, the number of companies buying bitcoin for their treasury has decreased to 2.8 per day. The founder of Capriole Investments Charles Edwards sees two possible causes. Perhaps this is due to saturation among firms in traditional finance (Tradfi). Or it may just be a temporary decline in demand.

Meanwhile, Ethereum and other altcoins attract more and more companies striving to diversify outside bitcoin. Jeff Kendrick, the head of the study asset research department at Standard Chartered, noted that Ethereum Treasury may offer a higher price than American spotes ETF on ETH.

This trend reflects wider changes. Bitcoin has long dominated corporate treasury strategies. Now Ethereum and altcoins such as BNB, Dogecoin and Pengu are increasingly accumulating.

Is a crypto panacea for business

A sharp increase in corporate interest in digital assets in recent months has been obvious. However, not everyone is sure of the stability of this trend. Some companies turn to cryptocurrencies to save a problem business. Others are chasing new -fangled market trends.

Andrew Bailey, a senior researcher at Bitcoin Policy Institute, warned that cryptocurrency could not solve deeper corporate problems.

Despite fears, institutional investments continue to enter the sector. Pantera Capital invested $ 300 million in the Digital Asset Treasury (DAT) portfolio. It includes companies such as Bitmine Immersion, Twenty One Capital, Defi Development Corp, Sharplink Gaming, Satsuma Technology, Verb Technology, CEA Industries and Mill City Ventures III. These companies own many cryptocurrencies, including bitcoin, Ethereum, Solana, BNB, Ton, Hyperlique, Sui and Ethena. They work in the USA, Great Britain and Israel.

The growth of alternative treasury assets raises questions about whether Bitcoin loses popularity among corporations. Companies are increasingly experimenting with Ethereum and other altcoins. So far, it remains unclear whether they put on a higher growth potential or are protected from the volatility of bitcoin. Nevertheless, this trend indicates a possible change in the balance of forces in corporate accepting cryptocurrencies. Time will tell whether this shift in the strategy of corporate treasury or temporary diversification will be told.

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