Treasury Buying Drops as Demand Weakens
New data from Bitwise reveals a significant downturn in Ethereum treasury accumulation during November. Treasuries purchased only 370,000 ETH last month, marking an 81% decrease compared to August. This steep decline stands in stark contrast to the robust buying activity that characterized the market from July through October.
During those preceding months, demand consistently outpaced supply. Monthly ETH purchases ranged from 370,000 ETH to nearly 2 million ETH. The net-new supply remained anchored at 80,000 ETH each month, an imbalance that supported Ethereum and maintained steady pressure on circulation.
However, November marked a significant break in this trend. Demand experienced a sharp slowdown as corporate treasuries reduced their aggressive accumulation strategies. This decline in treasury activity now raises concerns about the sustainability of Ethereum's internal bid to support the market. The trend also mirrors previous periods when liquidity significantly faded, diminishing the capacity of smaller participants to sustain buying pressure.
Bitwise also noted a concurrent weakening of the mNAV metric, which tracks treasury health. A lower mNAV reading suggests that treasuries possess less available buying power. This pattern is reminiscent of structural slowdowns observed during earlier market resets.
Digital Asset Treasury Inflows Hit Yearly Low as Stocks Fall
Digital asset treasuries also experienced their weakest month of the year in November, recording only $1.32 billion in inflows. This figure represents a 34% drop from October and an 88% plunge from September. The pullback disproportionately affected ETH, which transitioned from leading inflows to experiencing net outflows.
Bitcoin treasuries continued to attract the majority of the capital, with BTC inflows reaching $1.06 billion, largely due to two substantial purchases. Strategy acquired $835 million in Bitcoin on November 17, and Metaplanet added another $130 million on November 25. XRP followed with $214 million in inflows, helping to mitigate the overall decline.
ETH stood out as the exception, recording $37 million in outflows despite BitMine Immersion Technologies continuing its purchasing activities throughout the month. This shift signifies a clear reversal from earlier periods when Ethereum was at the forefront of corporate accumulation.
Digital asset treasury equities also faced challenges. Major stocks associated with treasury strategies experienced sharp corrections, despite a brief rally earlier in the week. This decline reflected broader pressure on treasury-focused companies as demand cooled.
Bitwise chief investment officer Matt Hougan commented that digital asset treasuries had moved in close correlation for most of the year, rising and falling together across six months. He now anticipates greater divergence between firms, suggesting that companies with clear objectives and strong execution may find support, while others could face continued pressure if demand persists in weakening.
The significant collapse in ETH treasury buying suggests a structural reset rather than a temporary pause. The Ethereum ecosystem heavily relies on treasury activity during periods of intense speculation. When buying weakens, the internal capital recycling process slows considerably, placing additional strain on smaller treasuries as they lose the ability to fund new purchases.
This current cycle bears a resemblance to periods preceding major market resets in previous years. In each instance, liquidity faded, mNAV weakened, and treasury flows slowed. This recurring pattern hints at renewed stress across the speculative segments of the Ethereum market.
As demand cools, Ethereum is entering a slower growth phase, a stark contrast to the aggressive accumulation witnessed earlier in the year. This shift also challenges the long-standing narrative that treasury strategies could serve as a sustained engine for growth.