ETHZilla Invests $425M in Ethereum Treasury to Boost DeFi
ETHZilla, formerly 180 Life Sciences, has shifted its core focus to Ethereum treasury management. This Ethereum treasury management strategy involves a $425 million investment to bolster its ETH holdings. The firm now holds 82,000 ETH, underscoring its commitment. This move marks a notable expansion of corporate crypto adoption.
By boosting its ETH holdings, ETHZilla aims to influence DeFi liquidity and on-chain staking. Analysts project that growing treasury reserves could raise the Total Value Locked across protocols. Industry expert Tom Lee forecasts ETH may reach $7,500 by 2025, reflecting strong market potential. This development highlights growing corporate influence on the DeFi market and the rising role of institutional treasury management in decentralized finance.
Bullish
ETHZilla’s $425 million allocation to its Ethereum treasury represents a substantial vote of confidence from a corporate entity. Similar to MicroStrategy’s high-profile Bitcoin purchases, this move may encourage other firms to diversify treasuries into digital assets. In the short term, large-scale buying tends to reduce circulating supply and drive price appreciation. As ETHZilla increases its ETH holdings, DeFi liquidity and staking demand may rise, potentially lifting protocol TVL and on-chain activity.
In the long term, corporate treasury adoption deepens institutional legitimacy for Ethereum. Growing on-chain staking and treasury reserves can support network security and yield expectations, reinforcing bullish fundamentals. While market sentiment can be volatile, the trend of enterprise treasury management investments historically correlates with sustained upward momentum. Therefore, this development is likely to foster a positive environment for ETH price and broader DeFi growth.