To that end, Joe Lubin-chaired SharpLink Gaming has handsomely positioned itself with the shrewd purchase of 16,373 ETH ($48.85 million). This monumental investment, made possible through Galaxy OTC, temporarily moved Ethereum prices above the $3,000 threshold. The company intends to stake and restake the purchased ETH, permanently removing some of the cryptocurrency’s circulating supply.
SharpLink Gaming’s recent acquisition is the latest piece of a larger strategy that includes more than $600 million in ETH purchases. This decision underscores increased institutional demand for Ethereum staking and its ability to shift market dynamics. SharpLink Gaming is burning a record 18% of the total issued ETH supply. This action is meant to ensure further long-term stability and growth of the Ethereum network.
The company’s play is to stake the ETH it acquires to earn rewards on it, which adds to the incentive to hold the cryptocurrency’s value. In particular, staking — the practice of locking up cryptocurrency to help power blockchain networks — has seen rapid growth. This participatory process makes the network more dependable but lets users earn rewards, making it a perfect method to produce passive income. SharpLink Gaming’s overall strategy encompasses some degree of restaking, a strategy that lets you stake ETH on multiple platforms at once to earn the highest return.
It’s interesting to note the acquisition’s effects on Ethereum’s price. Immediately after the announcement, Ethereum briefly crossed back over $3,000, showing just how much of an impact big institutional investments can have at moving market sentiment. According to experts, ongoing treasury accumulation by SharpLink Gaming would propel long-term price appreciation for Ethereum.
This disruptive move by SharpLink Gaming is poised to shift Ethereum market fundamentals by removing a significant portion of the liquid supply. With around 24% of ETH locked up in both staking and restaking actions. This reduces the supply in circulation that would be available for trading, potentially accelerating scarcity and price appreciation. These changes would likely have serious long-term implications for the Ethereum network and the global crypto market.
Nguyen Thi Hanh
Cryptocurrency Writer
Nguyen Thi Hanh channels progressive, pragmatic views into high-energy, approachable crypto journalism, delivering confident, animated articles with regional and global relevance. Her optimistic, party-going spirit helps translate complex blockchain ideas into viral, visually engaging stories. Outside of writing, she enjoys urban food adventures and organizing community hackathons.
