VanEck Warns of ETH Dilution Risk as Digital Asset Treasuries Reach $135B

Digital asset treasuries have surged to approximately $135 billion in total holdings, with investment firm VanEck cautioning that Ethereum (ETH) holders face growing dilution risks as the network’s economics shift away from fee-driven yields toward monetary asset ￰1￱ warning comes as declining Layer 1 fee revenues coincide with rising ETH dilution for non-stakers, threatening the long-term value proposition for investors who don’t participate in staking.) climbed over 6% after the company disclosed it purchased nearly $1 billion in Ethereum, increasing its total $ETH treasury valuation to $11 billion. #Ethereum #Bitmine #ETH ￰0￱ — ￰2￱ (@cryptonews) September 29, 2025 SharpLink Gaming also expanded its position to 838,152 ETH while repurchasing nearly 1.94 million shares under a buyback program , citing ￰3￱ company reported a net asset value of $3.86 billion with no outstanding debt and has generated 3,240 ETH in staking rewards since June.

Similarly, the Ether Machine filed a draft SEC registration statement on September 17 for its planned merger with Nasdaq-listed SPAC Dynamix ￰4￱ firm added 150,000 ETH in August alone, bringing total holdings to 495,362 ETH worth approximately $2.16 ￰5￱ merger is expected to close in the fourth quarter pending shareholder ￰6￱ Upgrade Raises Stakes for Staked Versus Unstaked ETH Ethereum co-founder Vitalik Buterin unveiled Fusaka as the network’s most ambitious scaling upgrade , introducing PeerDAS technology that allows validator nodes to verify information by checking small random pieces rather than downloading complete data ￰7￱ upgrade will more than double blob capacity within two weeks through automated parameter-only forks, expanding from the current limits of 6/9 blobs to 14/21.