Ethereum Surges Over $4,000: Institutional Demand Soars, Buterin Warns of Risks

Ethereum: Billion-Dollar Trend and the Voice of the Founder

According to Der Aktionär, more and more companies are filling their treasuries with Ethereum, a trend that could provide significant momentum for the ETH price in the future. Ethereum founder Vitalik Buterin recently commented on this development in the "Bankless" podcast, describing it as a valuable service that makes Ethereum accessible to a broader range of investors. Buterin stated, "Valuable services are definitely being provided here," and emphasized that it gives investors with "different financial circumstances" more options to participate in Ether's value development.

However, Buterin also issued a clear warning regarding the excessive use of leverage. He painted a bleak scenario: "If you wake me up in three years and tell me that these treasuries led to the downfall of ETH, my guess would be that they somehow turned it into an overleveraged game." A price drop in Ethereum could trigger a devastating chain reaction, leading to forced liquidations and further downward pressure—a classic downward spiral.

"If you wake me up in three years and tell me that these treasuries led to the downfall of ETH, my guess would be that they somehow turned it into an overleveraged game." – Vitalik Buterin

More companies are holding Ethereum in their treasuries.
Buterin sees both opportunities and significant risks, especially with leverage.

Summary: The institutional adoption of Ethereum is growing, but Vitalik Buterin warns of the dangers of excessive leverage, which could lead to a downward spiral in the event of a price correction. (Source: Der Aktionär)

Ethereum Breaks $4,000 – Further Upside Potential

broker-test.de reports that Ethereum has broken through the $4,000 mark after months of struggling with this resistance, reaching a new multi-month high. The rally is driven by record network activity, increasing corporate demand, and fundamental factors pointing to a possible new all-time high.

Metric	Value / Development
Current Price	~$4,000
All-Time High (2021)	~$5,000
Network Utilization	Record High
Largest Corporate Holder	BitMine Immersion Technologies (833k ETH)
Bullish Price Target	$4,500–$5,000
Key Support	$3,800

On August 5, the Ethereum network processed 1.74 million transactions—a new record. July 2025 was the most active month ever, with 46.67 million transactions. This increase in activity was enabled by a 25% increase in the gas limit. Public companies such as BitMine Immersion Technologies (833,137 ETH), SharpLink Gaming (521,939 ETH), and The Ether Machine (345,000 ETH) are building strategic holdings, already accounting for about 1.6% of the total ETH supply, with the potential to rise to 10%.

Record network activity and increased gas limit drive growth.
Corporate accumulation strengthens buying pressure.
Technical analysis points to targets between $4,500 and $5,000.

Summary: Ethereum is benefiting from a unique combination of fundamental strength, corporate demand, and technical momentum. The breakout above $4,000 could be the starting signal for a move toward $5,000. (Source: broker-test.de)

Vitalik Buterin Supports Ethereum Treasury Firms but Warns of a Major Risk

BTC-ECHO highlights that Ethereum strategy firms now hold nearly 1.75 million ETH worth $7.3 billion after aggressive purchases in recent weeks. Vitalik Buterin sees this institutional adoption as mostly positive, as it makes the coin accessible to a broader spectrum of investors. In the "Bankless" podcast, Buterin emphasized the value of listed companies holding ETH on their balance sheets.

Nevertheless, Buterin warns against excessive leverage: "If you wake me up in three years and tell me that treasuries led to the downfall of ETH, my guess would be that they somehow turned it into a game with too much debt." In a worst-case scenario, an ETH correction could lead to forced liquidations, which could then cascade and drive the ETH price further down. However, Buterin remains optimistic about the prudence of the new Ethereum investors, stating, "We're not talking about followers of Do Kwon," referencing the collapse of the Terra project in 2022.

Ethereum treasury firms hold 1.75 million ETH ($7.3 billion).
Buterin sees institutional adoption as positive but warns of leverage risks.
BitMine and SharpLink are leading in ETH accumulation.

Summary: Institutional ETH holdings are at record levels, but Buterin warns that excessive leverage could trigger a downward spiral. (Source: BTC-ECHO)

Ethereum vs. Solana: Race for Tokenized Stock Dominance

According to BTC-ECHO, the market for tokenized stocks entered a new phase in 2025, with growth rates reminiscent of the DeFi hype of 2021. The market capitalization has risen by about 217% since June to $367.8 million. Tesla (TSLA) and the S&P-500 ETF (SPY) account for the majority of trading volume. The number of active on-chain addresses exploded from 1,609 to 89,854—a 56-fold increase.

While providers like Backed Finance are increasingly offering xStocks on Solana (via Kraken, Bybit, Jupiter), Ethereum remains the dominant player: $4.59 billion of the total $5.75 billion market for tokenized assets is on the ETH blockchain. Solana, despite innovations in DeFi, is currently experiencing declining capital inflows, with the SOL/ETH ratio down nearly 50% since early 2025, at its lowest level in over a year.

Metric	Value
Market Cap (Tokenized Stocks)	$367.8 million
Growth since June	+217%
Active On-Chain Addresses	89,854
ETH Share of Tokenized Assets	$4.59 billion
Total Tokenized Asset Market	$5.75 billion

Ethereum leads the tokenized asset market by a wide margin.
Solana is innovating but losing ground in capital inflows.
Tokenization could create a market of over $1.3 trillion if just 1% of global stocks are digitized.

Summary: Ethereum is the clear leader in the tokenized asset market, but Solana is pushing for innovation. The trend toward tokenization could have a massive impact on both networks. (Source: BTC-ECHO)

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