Ethereum Co-founder Lubin: ETH Treasuries Key to Fixing Supply-Demand Imbalance

Ethereum co-founder Joseph Lubin has stated that establishing ETH treasuries is “crucial” for the ecosystem’s growth, aiming to resolve the imbalance between the vast amount of Ether in circulation and the demand needed to utilize it. These treasuries, he explained during a CNBC interview, are designed to systematically accumulate Ether.

Lubin, who chairs treasury-focused firm SharpLink Gaming, termed running these treasuries as a “great business,” believing they will significantly influence the dynamics of Ether’s supply and demand as more applications are built on the network.

Treasuries, according to Lubin, generate interest and scarcity by accumulating large volumes of the asset (claiming the ability to acquire tens of millions of dollars in ETH daily) and fostering anticipation of future holdings. The primary focus of SharpLink is to frame the “Ethereum story” in a manner attractive to Wall Street, emphasizing financial returns.

“So Ethereum is scalable enough, affordable enough, legal enough in the United States.”

SharpLink Gaming surges following announcements of significant ETH holdings accumulation, further highlighting investor interest in these strategies.

Optimistic Outlook: Bitcoin and Ethereum Poised for Continued Growth

Lubin expressed confidence that both Bitcoin and Ethereum will “continue to rise over the next years and decades” as the world transitions towards “increasing decentralization.”

Commenting on the regulatory environment, Lubin pointed to the departure of former SEC Chair Gary Gensler as positive for Ethereum’s development, stating his tenure had made token usage “really unattractive.” He suggested this period is now concluding, despite some reports indicating Gensler’s private support for crypto. He welcomed the new SEC Chair, Paul Atkins, who has indicated a view of tokenization as a potentially positive “innovation.”

The regulatory backdrop and increasing maturity of Ethereum infrastructure are noteworthy considerations.

The Case for Ethereum Treasuries

At its core, Lubin’s argument centers on the fundamental mismatch Lubin perceives within the Ethereum ecosystem.

Speaking to CNBC, Lubin asserted:

“a large amount of Ether (ETH) is in circulation, but there is insufficient activity to utilize it.”

He contends that these treasuries provide a mechanism to strategically manage the Ether supply, making it “right-size” alongside the increasing demand fuelled by application growth. Lubin believes the ecosystem infrastructure is now mature enough to support this, describing Ethereum as scalable, affordable, and legally usable within the United States.

The accumulation narrative underscores a rationale for Ether scarcity, a factor believed relevant for asset appreciation.

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