Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Ethereum News Today: Ethereum’s Sharp Decline Puts DATs’ Accumulation Approach in Jeopardy

Ethereum News Today: Ethereum’s Sharp Decline Puts DATs’ Accumulation Approach in Jeopardy

Bitget-RWA2025/11/20 21:48
By:Bitget-RWA

- Ethereum's drop below $3,000 triggered a DAT sector crisis, erasing annual gains and exposing risks in corporate ETH accumulation strategies. - BitMine faces $3.7B in unrealized losses as its mNAV ratio fell to 0.77, mirroring 64.3% of DATs trading below asset value amid $2B crypto fund outflows. - Firms like FG Nexus are selling ETH for buybacks, worsening downward pressure while experts warn the $3,000 level tests regulatory adoption progress. - Derivatives data shows 70% probability of Ethereum hittin

Ethereum’s recent slide below the $3,000 threshold has sparked a crisis among digital asset treasury (DAT) companies, wiping out gains made over the past year and revealing weaknesses in the corporate

accumulation approach. The sharp price decline has caused a significant drop in the market-to-net asset value (mNAV) ratios for numerous firms, making it harder to raise capital and putting their ability to grow reserves at risk. Technologies, which holds the largest public Ethereum treasury, is now facing $3.7 billion in unrealized losses as its mNAV ratio dropped to 0.77, .

This downturn came after BitMine’s $170 million ETH acquisition last week, bringing its total stash to 3.56 million ETH (valued at $11.1 billion). Despite this, the company’s stock has tumbled 35% this month,

. This reflects broader industry woes: are now trading below their mNAV, indicating that market prices are not keeping up with their asset portfolios. The price crash has also triggered $2 billion in outflows from crypto investment funds over the past week, with Ethereum ETFs seeing $689 million in withdrawals, .

Ethereum News Today: Ethereum’s Sharp Decline Puts DATs’ Accumulation Approach in Jeopardy image 0
The turmoil has brought increased attention to the DAT business model, which is built on the premise of ongoing asset accumulation regardless of price. Despite the challenges, BitMine Chairman Tom Lee remains optimistic, forecasting an Ethereum "supercycle" similar to Bitcoin’s 100-fold rise since 2017. He attributes the current slump to the lingering impact of a $19 billion liquidation event in October, which he says has led to a "quantitative tightening" as market makers pull back on liquidity . Meanwhile, companies such as FG Nexus and ETHZilla have started selling ETH to finance share repurchases, .

Bearish sentiment is also evident in the derivatives market, where there is a 70% chance that Ethereum will fall to $2,750 by the end of the year,

. This stands in contrast to the optimism seen in early 2025, when Ethereum treasuries hit their peak in August. The difficulties facing the sector are not limited to Ethereum: Bitcoin has also dropped 35% from its August peak, though Strategy (MSTR), the largest treasury, continues to accumulate, purchasing $835 million in BTC this week .

Analysts caution that the current market is a major test for DATs’ durability. “The $3,000 mark serves as a benchmark for progress in regulatory and institutional adoption,” said

. With corporate buyers still accumulating on net, the future of the sector may depend on how quickly Ethereum can recover. For now, the market is gripped by “extreme fear,” with ongoing liquidations and capital flight suggesting the downturn could persist .

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Ethereum News Update: Growing Institutional Interest in ETH Amid Rising Worries Over Decentralization

- Ethereum’s institutional adoption accelerates as Tether , BlackRock , and SGX expand crypto infrastructure and ETF strategies. - Vitalik Buterin warns of decentralization risks from concentrated ETH ownership and potential quantum computing threats by 2028. - SGX launches Bitcoin/Ethereum futures to boost institutional liquidity, while ETF outflows and bearish indicators signal market weakness.

Bitget-RWA2025/11/21 00:46
Ethereum News Update: Growing Institutional Interest in ETH Amid Rising Worries Over Decentralization

Musk's Vision of a Future Without Mandatory Work Ignites Discussions on the Practicality of AI and Social Disparities

- Elon Musk predicts work will become optional in 10-20 years as AI/robotics render traditional labor obsolete, comparing future employment to leisure activities. - Tesla aims for 80% of its value to derive from Optimus robots, while economists question scalability challenges and decreasing returns in robotics adoption. - AI-driven sectors like Energy Management Systems are projected to grow rapidly, but face high costs and integration barriers for small businesses. - Critics warn Musk's vision risks exace

Bitget-RWA2025/11/21 00:46
Musk's Vision of a Future Without Mandatory Work Ignites Discussions on the Practicality of AI and Social Disparities

Federal Reserve Decisions and Their Impact on Solana (SOL)

- Fed's 2025 rate cuts and QE pivot drive institutional capital into Solana's blockchain ecosystem, boosting staking ETFs to $550M in assets. - Regulatory alignment via GENIUS Act and Solana's U.S.-backed stablecoin enhance institutional trust in crypto compliance frameworks. - Fed policy uncertainty triggers short-term volatility (14% Solana price drop), yet 21Shares' $100M ETF inflow signals enduring institutional confidence. - Projected 2026 QE transition could amplify liquidity for Solana's DeFi infras

Bitget-RWA2025/11/21 00:44

ICP Caffeine AI's Latest Advancement and Its Impact on the Web3 Industry Driven by Artificial Intelligence

- ICP Caffeine AI, launched by DFINITY in 2025, enables no-code dApp development via natural language prompts on the Internet Computer blockchain. - Its "chain-of-chains" architecture processes AI tasks on-chain, positioning ICP as a first "AI-native blockchain" with hybrid cloud scalability. - A reverse-gas tokenomics model drove 56% ICP price growth and $237B TVL, but dApp activity dropped 22.4% amid SEC regulatory pressures. - Strategic Chain Fusion tech enables Bitcoin/Ethereum interoperability, attrac

Bitget-RWA2025/11/21 00:44