Key Insights
- •SharpLink Gaming plans to deploy $200 million in ETH from its corporate treasury into Linea.
- •SBET stock price jumped nearly 0.60% higher to $14.39 amid plans to boost in DeFi yields.
- •Analysts remain bullish on SBET stock and Ethereum price.
In the latest Ethereum news, SharpLink Gaming announced on Tuesday its intention to deploy ETH from its corporate treasury onto Consensys’ zkEVM Layer 2 network, Linea. This strategic allocation aims to enhance the company's staking yield and restaking rewards.
As a direct consequence of this announcement, SBET stock price experienced a modest 0.60% increase in pre-market trading hours. Ethereum (ETH) price has also seen a climb of over 0.60%, supported by positive sentiment within the broader cryptocurrency market.
SharpLink Gaming to Deploy $200M ETH in Joseph Lubin-Linked Linea
According to an official announcement made on October 28, SharpLink Gaming disclosed its plan to invest $200 million in Linea, an Ethereum Layer-2 blockchain developed by Joseph Lubin's Consensys. This deployment signifies a significant move by the company to leverage decentralized finance opportunities.
The Ethereum treasury will collaborate with key partners, including EtherFi, EigenCloud, and Anchorage Digital, with the primary objective of enhancing ETH-denominated returns for its shareholders. By utilizing Linea, the firm aims to unlock scalable, secure, and composable methods for optimizing on-chain yield generation.
The anticipated yield generated from this initiative will be a combination of native Ethereum staking yield, restaking rewards sourced from EigenCloud Autonomous Verifiable Services (AVSs), and direct incentives provided by Linea and EtherFi. This multi-faceted approach is designed to maximize returns.
SharpLink Gaming co-CEO Joseph Chalom described this initiative as one of the most significant opportunities for an Ethereum treasury firm. He further elaborated that this deployment will grant the company access to the most advantageous aspects of Ethereum’s staking, restaking, and DeFi yield opportunities.
“This is a foundational step in our broader strategy to responsibly generate enhanced staking yield and optimize treasury performance in a way that maximizes stockholder value, and marks the beginning of a much larger effort.”
SharpLink (SBET) Stock Price Jumps
At the time of reporting, the SBET stock price had risen by nearly 0.60%, reaching $14.39 during pre-market trading on Tuesday. This upward movement indicates strong investor confidence in Ethereum's potential upside, as reflected by the performance of related treasury stocks.
SharpLink stock concluded Monday's trading session with a 2.14% gain, closing at $14.31. Despite a recent monthly decline of over 10%, the stock's year-to-date return remains at an impressive 86%, according to data from Yahoo Finance.
Analysts have provided optimistic near-term price targets for SharpLink Gaming, with projections set at $20, and a year-end price target of $40.46. The stock continues to trade above its 200-day Simple Moving Average (SMA), with a key support zone identified between $12.96 and $13.44.
Furthermore, this strategic partnership highlights SharpLink's institutional approach to actively managing and deploying its treasury assets. Linea is positioned as an emerging platform for institutional ETH capital, while EigenCloud is recognized as a reliable provider of ETH-denominated yield solutions.
Analyst Predicts Ethereum Price at $10,000 This Cycle
In light of the recent announcement from SharpLink, analyst Ted Pillows has shared his outlook on Ethereum's price trajectory. Pillows noted that Ethereum has experienced a period of consolidation for nearly four years, with upward momentum gradually returning to the cryptocurrency. He expressed his belief that Ethereum has not yet reached its peak for this cycle.
Pillows has issued a bold prediction for Ethereum's price, forecasting a range of $8,000 to $10,000 within the current cycle. Concurrently, the Ethereum treasury firm has expanded its total holdings to 859,400 ETH, valued at approximately $3.6 billion.
In the past 24 hours, ETH price has increased by 1%, trading at $4,158. The 24-hour low and high prices recorded were $4,069 and $4,232, respectively.
Furthermore, trading volume has decreased by 15% over the last 24 hours, suggesting a reduction in active trader interest.