- Buterin’s crypto holdings exceed $1 billion after the ETH upswing.
- Increased institutional demand supports rising Ether price.
- Buterin highlights the threat of forced liquidations from leverage.
One of the original Eth founders, Vitalic, is now worth a billion dollars again. Ether has risen above $4,200, which has increased its on-chain portfolio to approximately $1.04 billion, Arkham said. Buterin owns about 240,000 ETH, as well as smaller proportions of such tokens as Aave Ethereum and Wrapped Ethereum.
Source – X
Ether surged 6.38 percent on the weekend, reaching an all-time high of $4,332 since December 2024. Buterin has been elevated back into the billionaire range with this price surge, and it renewed the optimism of crypto traders. A few market players anticipate Ether to imminently break its record high of about $4,878.
Could Ethereum’s Leverage Lead to Disaster?
Nevertheless, despite the optimism in the price, Buterin made a note of caution in the Bankless podcast. He cautioned that taking out aggressive loans against the Ethereum reserves could turn out to be a risky game. There are threats of a sharp market correction that might trigger mass liquidations and a price cascade, and loss of confidence.
Source – X
Buterin painted a dismal picture in which a 30 percent lowering of the rate gets compounded. Leveraged positions may be unwound at a fast pace, leading to the extermination of profits and destabilizing the whole ecosystem. The threat is because the businesses possess large treasuries of ETH and can borrow a large amount of money through the use of ETH.
On the other hand, Buterin also noted the benefits that have been associated with corporate ETH treasuries. Such holdings can enforce the network of Ethereum and develop various investment options other than direct ownership.
Although it has a negative side, these elements emphasize the increasing institutional adoption of Ethereum.
Market Signals and ETF Inflows Fuel Momentum
The impetus behind Ether is supported by a growing institutional interest and record inflows to Ether Exchange-Traded Funds (ETFs). ETH exchange-traded funds (ETFs) recently received an inflow of $461 million.
Surpassing the inflow of $404 million that Bitcoin experienced. Injections of cash supply and legitimacy to the ever-increasing price of Ether are becoming increasingly common.
It is also a continuation of a wider development with Ethereum further entrenching its position as a leader in digital finance, which is bolstered by regulatory frameworks that promote stablecoins and crypto investment products.
Heightened interest through institutional sources has the potential to send ETH to new highs, but there are still dangers of excessive leverage in the market.
