Analyst: ETH performs well driven by increased holdings from treasury companies, but it is questionable whether it can maintain high capital inflows

ChainCatcher news, according to The Block, Presto research analyst Min Jung stated that the market's buying pressure is primarily maintained by the continued accumulation of digital asset treasury companies (DAT), attributing Wednesday's significant rise in Ethereum to this trend.

Jung said, "ETH has performed well again and is likely benefiting from the capital flow also driven by DAT. However, we remain cautious about the sustainability of this theme and DAT's ability to continue maintaining high purchase volumes." The analyst also noted that capital is continuously rotating from Bitcoin to Ethereum, as traders believe that after Bitcoin reached historical highs in July and August, Ethereum offers more profit opportunities.