The Digital Assets Treasury market is entering a fierce “PVP” phase where the benefits of early invoicers are no longer guaranteed tickets for growth.
The facility’s Treasury Ministry has accumulated over 1 million BTC and almost 5% of its circulating ETH supply. This accumulation transforms them into players who have a direct impact on the supply and demand of the market. Which organizations will actively utilize this advantage to lead the game? Which of the following waves of intense competition will fall behind?
PVP: Strong’s Choice?
David Duong – Head of Research at Coinbase – recently highlighted that the Digital Assets Treasury (DAT) market has entered the “Player vs. Player” (PVP) stage. The rarity premium enjoyed by early participants is declining. Markets now demand superior trade execution, governance and strategic differentiation to remain competitive.
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“We believe that technical demand from the Ministry of Digital Assets Treasury will provide continued support to the crypto market in the short term. However, the DAT phenomenon has reached an important inflection point,” Duong said.
According to Duon, the market has also become an early mining stage that characterizes the past six to nine months. However, this does not mean that the market is approaching endgame.
Data and public companies own approximately 5% of their supply, 1 million BTC. This represents a symbolic threshold that reflects the identifiable impact on the dynamics of supply and demand in the spot market. The main ETH-specific data owns around 4.9 million ETH, worth around $21.3 billion. This represents more than 4% of the total circulating ETH supply.
The shift to the “PVP” phase has two distinct meanings.
As more institutions accumulate large amounts of BTC and ETH, institutional demand increases. This demand supports prices on a short-term basis, similar to the liquidity gains seen when ETFs promote activity in spot markets. Researchers have found that institutional products such as ETFs improve liquidity and reform market structure predictively.
As competition rises, First Maver actively narrows down stock/trading fee premiums over the net asset value (NAV) they once enjoyed. Investors are beginning to compare performance directly between entities. MicroStrategy is a classic case. Trading premiums through NAVs were once very high, but are under pressure. The capital markets and their financing strategies are under increasing scrutiny.
“In our view, the rarity premium that benefited early adopters has already dissipated. Only the most disciplined and strategically located players will flourish in this PVP phase,” Duon added.
In this “PVP” environment, success belongs to an organization that optimizes execution and risk management. This is a transition from people who previously relied on passively holding large token positions.
