Ethereum surges, Vitalik reclaims the title of on-chain billionaire.
With Ethereum ($ETH) strongly breaking through the $4,300 mark in early August, reaching a new high in eight months, co-founder Vitalik Buterin's on-chain net worth has also surged.
Data from blockchain analysis platform Arkham shows that as of August 10, Vitalik Buterin currently holds about 240,000 Ethereum, with the total on-chain asset value exceeding $1 billion again, rejoining the ranks of on-chain billionaires.
Source: Arkham Vitalik Buterin currently holds about 240,000 Ethereum, with the total on-chain asset value exceeding $1 billion again.
Meanwhile, data from Companies Marketcap shows that as of August 11, the total market value of Ethereum reached $51.972 billion, surpassing MasterCard, streaming giant Netflix, and retail giant Costco, ranking 22nd in the global asset market value list.
Source: Companies Marketcap Ethereum's market value surpasses MasterCard, ranking 22nd in the global asset market value list.
Are Ethereum reserve companies the driving force? Cumulatively holding over $13 billion in ETH.
The recently rising 'Ethereum Reserve Strategy Companies' on Wall Street are considered one of the key contributors to Ethereum's recent surge; these publicly listed companies raise funds to buy and hold large amounts of Ethereum.
For example, SharpLink Gaming, which focuses on this strategy, recently raised $200 million through direct issuance, bringing its total Ethereum holdings close to $2 billion, indicating that this trend is rapidly expanding.
Data from Strategicethreserve.xyz shows that as of August 11, there are currently 11 publicly listed companies holding more than 100 Ethereum, with a cumulative total value reaching $13 billion.
Source: Strategicethreserve.xyz Ethereum reserve companies cumulatively hold over $13 billion in ETH.
Vitalik recognizes the value of reserve companies but warns of 'excessive leverage'.
Regarding the trend of Ethereum reserve companies, Vitalik expressed mixed feelings in an interview with (Bankless).
On one hand, he acknowledges that these companies provide 'valuable services' that allow traditional investors to access Ethereum through more diverse channels, but on the other hand, he also issues a stern warning.
Vitalik's main concern is that these reserve companies might turn the Ethereum ecosystem into a game of excessive leverage.
In the interview, he described the worst-case scenario: if the price of Ethereum falls, it could trigger forced liquidations of these companies, leading to a chain liquidation effect, causing a plummet in coin prices and severely damaging market credibility.
He stated directly: 'If you wake me up three years later and tell me that reserve companies caused the decline of Ethereum, I would guess the reason is that they turned it into a game of excessive leverage.'
Although Vitalik issued a warning, market sentiment remains high. Many traders expect that Ethereum is just days away from challenging the historical high of $4,878 set in November 2021.
See more Ethereum-related news:
Ethereum breaks through 4300, where will it go next? Analysts reveal price models: predicting 3 target prices.
Ethereum breaks through 4300! Arthur regrets swearing not to take profits, has bought back all positions.
Standard Chartered Bank: Ethereum financial companies are very worthwhile investments! Why are they more attractive than ETFs?
'Ethereum's market value surpasses MasterCard! Vitalik's net worth exceeds $1 billion, but he warns to be careful about one thing.' This article was first published in 'Crypto City'.
