Analyst: ETH's strong performance driven by treasury companies' accumulation, but sustainability of high capital inflows remains uncertain

BlockBeats News, September 4, according to The Block, Presto research analyst Min Jung stated that the market's buying pressure is mainly sustained by the continuous accumulation from Digital Asset Treasury (DAT) companies, and attributed Ethereum's significant gains on Wednesday to this trend.

Jung said: "ETH has once again performed exceptionally well, most likely benefiting from the same capital flows driven by DAT. However, we remain cautious about the sustainability of this theme and the ability of DAT companies to continue maintaining high purchase volumes."

The analyst previously pointed out that capital has been continuously rotating from bitcoin to ethereum, as traders believe that after bitcoin hit all-time highs in July and August, ethereum offers more profit opportunities.