Ethereum Set to Outshine Rivals in Digital Asset Treasury Shakeup

Ethereum could soon rise as the biggest winner in the fast-changing digital asset treasury market, as pressure builds on companies that hold cryptocurrencies as balance-sheet assets. A new report from Geoffrey Kendrick, global head of digital assets research at Standard Chartered, says the sector is facing a sharp reset, and Ethereum’s built-in staking income could be the key factor helping it outlast competitors.

Kendrick believes Ethereum treasuries are better positioned than either Bitcoin or Solana because their staking yields support stronger valuations. This edge has become crucial as the market-value-to-asset ratios of digital asset treasuries (mNAVs) have dropped, slashing their market worth and shaking investor confidence.

DAT Valuations Face Steep Declines

Digital asset treasuries, or DATs, have been under heavy pressure in recent weeks. Their mNAVs, which compare a company’s market value to the value of its crypto holdings, have plunged. This drop has made it harder for these firms to raise new funding and keep adding to their token reserves.

These companies now collectively hold a major share of the crypto market:

• About 4% of all Bitcoin

• About 3.1% of all Ethereum

• About 0.8% of all Solana

But the imbalance in valuations has created a risk for firms that focus heavily on one asset, especially Bitcoin. Kendrick warns that these companies are most exposed to market saturation and could become targets for consolidation.

Consolidation Threatens Bitcoin-Focused Firms

As investor appetite cools, Bitcoin-heavy treasuries could see their discounts widen further, which might make them vulnerable to takeovers. Kendrick points out that if mergers occur, they would mainly shuffle existing holdings around instead of bringing new demand into the market.

This means the consolidation would not lift prices or attract new capital, but could actually reduce competition in the space. It may also slow innovation, as fewer firms remain active in acquiring and managing crypto assets at scale.

The risk for Bitcoin treasuries is that their shrinking valuations could trap them in a cycle of low growth and weak investor interest. Without the added benefit of staking rewards, they have little cushion to soften valuation drops or lure new buyers.

Ethereum Stands Out With Staking Yields

Ethereum’s major advantage lies in its staking system, which lets holders earn yield by locking up their tokens to support network operations. This income stream helps offset market downturns and makes Ethereum treasuries more appealing for long-term strategies.

BitMine Immersion (BMNR), the largest Ethereum-focused treasury, offers a clear example of this strength. The firm has already built a position of more than 2 million ETH, which is roughly 5% of the total Ethereum supply, and it is still growing its target.

This strong base gives Ethereum treasuries a built-in revenue engine that Bitcoin and Solana cannot match. Staking yields give Ethereum treasuries a natural buffer that protects their market value even in volatile conditions.

Key Drivers of Future DAT Growth

Kendrick highlights three main factors that will shape how DATs perform going forward: low-cost funding, size advantage, and yield potential. Ethereum aligns well with all three.

Firms that can borrow cheaply will be able to keep expanding their token reserves while others slow down. Larger treasuries also benefit from economies of scale, such as better liquidity and lower operational costs. And yield potential has emerged as a decisive edge, since staking payouts give Ethereum treasuries steady cash flow while rivals depend only on price gains.

A simple look at the current dynamics shows why Ethereum could pull ahead:

This combination of yield, scale, and financial flexibility could help Ethereum treasuries withstand market volatility and outgrow their peers.

What This Means for the Crypto Market

If Kendrick’s view holds, the coming phase of DAT growth could reshape how institutional investors approach crypto. Bitcoin may lose its dominant role as the main reserve asset on corporate balance sheets, while Ethereum could become the preferred choice for firms looking for both capital gains and passive income.

Such a shift could also change the market’s risk profile. Ethereum treasuries with staking rewards might attract more conservative investors who want predictable returns, while Bitcoin treasuries might appeal only to those willing to bet purely on price gains.

Ethereum could become the backbone of corporate crypto reserves if its treasuries continue to scale and deliver reliable income. That would mark a major turning point in how digital assets are used in the financial system.

The digital asset treasury landscape is entering a critical stage where performance gaps will widen fast. Ethereum has the elements to lead this change, while Bitcoin and Solana face mounting pressure to keep up. Whether this trend cements Ethereum’s role as the anchor of corporate crypto holdings is now the key question for the industry.