Ethereum founder Vitalik Buterin discussed the impact of firms holding ETH on the market and investors in a recent appearance on the Bankless podcast.
Support for ETH Treasury Firms
Vitalik Buterin highlighted that public firms holding ETH provide investors an indirect way to gain exposure to the asset without owning it outright. He believes this expands Ethereum’s reach to a broader audience, particularly those facing stricter financial constraints.
Risks of Aggressive Leverage
However, Buterin warned that aggressive leverage usage could spark a dangerous chain reaction: a sharp price drop leading to forced liquidations, accelerating losses, and damaging ETH’s credibility. He emphasized that restraint is key, noting the community now is more disciplined than during high-risk times like those involving Terra.
Current Situation in the ETH Market
The ETH treasury market has already swelled to $11.77 billion. Major holders include BitMine Immersion Technologies, SharpLink Gaming, and The Ether Machine. The recent rally of ETH—climbing over 160% from April lows—has been partly fueled by this accumulation trend. Analysts note that treasuries are helping Ethereum close the performance gap with Bitcoin and Solana.
Thus, the support of ETH treasury by firms offers new opportunities for investors, but the risks associated with aggressive trading and leverage usage necessitate careful evaluation and caution.
