As Ethereum (ETH) continues to swing violently below the $3,000 mark—down nearly 40% from its September 2025 all-time high—digital asset treasury firm Bitmine, led by veteran Wall Street strategist Tom Lee, has made a bold move that’s turning heads across crypto markets.

The company deployed $118 million to accumulate ETH during the downturn, sending a powerful signal of institutional confidence at a time when liquidity indicators are flashing and traditional finance (TradFi) is increasingly converging with decentralized finance (DeFi).

This is more than opportunistic dip-buying. According to market observers, Bitmine’s purchase represents a strategic bet on Ethereum’s emerging role as a global settlement layer for tokenized finance.

Ethereum Staking Shows Structural Reversal

To understand the timing of Bitmine’s move, analysts point to a major shift in Ethereum’s on-chain supply dynamics.

During the late-2025 correction, millions of ETH exited staking as investors sought liquidity, creating months of sustained selling pressure. That trend has now reversed.

Recent blockchain data shows that Ethereum’s exit queue has nearly cleared, while the amount of ETH waiting to enter staking has surged sharply. In practical terms, this means liquid supply is being rapidly locked up again.

Bitmine now controls roughly 3.4% of Ethereum’s circulating supply, with plans to deploy much of it into staking. The firm reportedly aims to generate up to $1 million per day in staking revenue, transforming a volatile asset into a yield-producing treasury engine.

This “digital treasury management” model—converting crypto volatility into predictable cash flow—is increasingly attractive to institutions heading into 2026.

Global Liquidity Expansion Favors High-Beta Assets Like ETH

From a macro perspective, Tom Lee’s Ethereum bet aligns closely with renewed global liquidity expansion.

Entering early 2026, M2 money supply across major economies has turned upward again, accompanied by a strengthening credit impulse. Historically, Ethereum behaves as a high-beta liquidity asset, meaning it tends to outperform sharply when liquidity conditions improve.

One notable signal: the Russell 2000 small-cap index in the U.S. recently broke to new highs. Quantitative models suggest Ethereum typically follows the Russell 2000 by several weeks to a few months, which is a pattern also seen ahead of the 2021 crypto bull run.

Market structure today closely resembles that pre-breakout phase, positioning ETH as a potential next beneficiary of liquidity rotation.

From Narrative Trading to Real Asset Tokenization

Ethereum’s 2026 fundamentals are also markedly different from prior cycles.

Instead of retail-driven speculation, today’s growth is increasingly fueled by real-world asset (RWA) tokenization. Major financial institutions are actively moving core operations on-chain.

BlackRock and JPMorgan are among the Wall Street giants embracing blockchain infrastructure, with JPMorgan reportedly selecting Ethereum rails to support settlement for portions of its $9 trillion money market operations.

This deep integration of traditional finance with Ethereum’s virtual machine (EVM) is creating a new valuation framework for ETH, which was one grounded in real usage, not hype.

Tom Lee has described Ethereum as the only “sovereign-grade settlement network” that is stress-tested, compliant, and has maintained uninterrupted uptime. That growing TradFi consensus is helping establish a strong valuation floor for ETH below $3,000.

On-Chain Data Points to a Defensive Price Floor Near $2,720

Another key indicator supporting Bitmine’s aggressive buying is Ethereum’s realized price, which is the average cost basis of long-term holders, which currently sits near $2,720.

Historically, when ETH trades close to this level, it often marks a local bottom. Bitmine’s accumulation around $2,900 suggests its internal risk models see limited downside from current prices.

In previous cycles, proximity to realized price has consistently attracted institutional capital seeking asymmetric risk-reward setups.

Analysts believe large players are now using macro-driven volatility to quietly build strategic positions, anticipating Ethereum’s next liquidity-fueled expansion phase.