Vitalik Buterin Backs Ethereum Treasury Firms Amid 163% Price Surge, Warns of Leverage Risks

Ethereum co-founder Vitalik Buterin has publicly supported the role of cryptocurrency treasury firms in broadening Ether's investor base, while simultaneously cautioning against the potential pitfalls of excessive leverage. As of August 2025, these firms collectively hold a staggering $12 billion in ETH, with industry leaders BitMine and SharpLink at the forefront. This sector's expansion aligns with Ether's remarkable 163% price surge this year, a rally significantly driven by heightened institutional participation. Buterin acknowledged the strategic value these entities bring in fostering mainstream adoption but emphasized the need for risk management in leveraged positions. The Ethereum ecosystem continues to demonstrate robust growth as it solidifies its position in decentralized finance, with treasury companies emerging as key liquidity providers and institutional gateways.

Vitalik Buterin Supports Ethereum Treasury Companies but Cautions on Risk

Ethereum co-founder Vitalik Buterin has endorsed the role of crypto treasury firms in expanding Ether's investor base, while warning against the dangers of excessive leverage. These firms now hold $12 billion in ETH, with BitMine and SharpLink leading the charge.

The sector's growth coincides with Ether's 163% price surge in 2025, fueled partly by institutional activity. Buterin acknowledged the value of these intermediaries in democratizing access but stressed that unchecked leverage could trigger price collapses and reputational damage.

Crypto treasury companies have become critical infrastructure for public corporations seeking crypto exposure without direct custody. Their rise reflects institutional confidence in Ethereum's long-term viability as a treasury asset.

Ethereum Price Prediction: ETH Rallies as Network Transactions Reach All-Time High

Ethereum's network activity has surged to unprecedented levels, with daily transactions hitting a record 1.74 million in August—eclipsing even the peaks of the 2021 bull market. Institutional interest is accelerating, as corporate holdings of ETH jumped 127.7% in July to over 2.7 million tokens, driven largely by ETF inflows.

The cryptocurrency currently trades around $3,621, a 22% discount from its all-time high. Analysts see room for growth, with near-term targets at $4,000 and long-term projections reaching $10,000. Whale accumulation has exceeded $1.2 billion since ETF approval rumors gained traction, signaling strong confidence among large investors.

August typically shows bearish performance for ETH, but 2025 is defying historical patterns. The convergence of record network usage and institutional adoption suggests a fundamentally stronger market structure compared to previous cycles.

Ethereum Transactions Hit Record High as Staking, SEC Clarity Fuel ETH Rally

Ethereum network transactions surged to an all-time high this week, with the seven-day average of daily transactions reaching 1.74 million. This surpasses the previous record of 1.65 million set in May 2021. The uptick in activity coincides with a regulatory milestone: the SEC's Division of Corporation Finance clarified that certain liquid staking activities and staking receipt tokens do not qualify as securities under the 1933 Securities Act, provided specific conditions are met.

The regulatory clarity is a bullish signal for the market. By reducing legal uncertainty, it paves the way for institutional adoption of liquid staking products. Demand for staked tokens like ETH is expected to rise, further locking up supply and supporting price appreciation. Over 36 million ETH—nearly 30% of the circulating supply—is now staked, according to Dune Analytics. This suggests holders are prioritizing yield over liquidity as ETH tests the $4,000 resistance level, last seen in December.

ETH's rally is also bolstered by growing institutional interest. Public crypto treasury companies now hold $11.77 billion worth of Ethereum, with BitMEX leading the pack. The confluence of record transaction volumes, staking demand, and regulatory tailwinds underscores ETH's strengthening position in the digital asset ecosystem.

Hong Kong’s IVD Medical Allocates $19M to Ether for RWA Tokenization Strategy

IVD Medical Holdings has acquired $19 million worth of ether (ETH), marking a strategic pivot toward real-world asset tokenization in healthcare. The Hong Kong-listed firm will deploy Ethereum's smart contracts to build ivd.xyz—a platform for pharmaceutical IP tokenization.

Chief Strategy Officer Gary Deng cited Ethereum's institutional recognition and liquidity as decisive factors, noting the SEC's spot ETH ETF approval. The treasury's ETH will facilitate on-chain asset governance, automated revenue distribution, and compliance for the planned IVDD stablecoin.

Unlike most Hong Kong public companies favoring Bitcoin, IVD plans active ETH utilization—staking, restaking, and derivatives exposure—to enhance yields while hedging downside risk. The MOVE signals growing corporate adoption of crypto beyond passive treasury holdings.

How to Buy Ethereum (ETH) in 2025: A Step-by-Step Guide for Beginners

Ethereum solidifies its position as a cornerstone of the cryptocurrency market, with its programmable blockchain enabling decentralized applications and smart contracts. The 2025 landscape sees heightened institutional adoption and technological upgrades, making ETH more accessible yet requiring heightened security measures.

Regulated platforms like eToro simplify onboarding, but beginners must prioritize KYC compliance and wallet security. The market's maturation demands vigilance against unregulated exchanges—a misstep that could prove costly in an era of increasing regulatory scrutiny.

Investing Haven's premium alerts track these developments, offering institutional-grade analysis on utility-driven crypto assets. Their research underscores Ethereum's enduring relevance amid fluctuating altcoin markets.

Vitalik Buterin Says Visa Started Like a DAO, Now Seen as Centralized

Ethereum co-founder Vitalik Buterin drew parallels between Visa's early structure and decentralized autonomous organizations (DAOs), emphasizing shared ownership and collaborative governance. Over time, Visa transformed into a centralized, profit-driven entity—a shift that underscores broader challenges in maintaining decentralization.

Buterin's observation highlights a critical tension in blockchain ecosystems: how to preserve community-driven ideals as projects scale. ethereum itself continues to experiment with governance models and smart contract innovations to address this very issue.