Vitalik Warning: Institutional ETH Holdings Continue to Expand, Ethereum Will Face Two Major Threats

By: theblockbeats.news|2025/11/20 10:45:55
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BlockBeats News, November 20th, Ethereum founder Vitalik Buterin warned at the Argentina Devcon conference that if the institutional Ethereum holdings continue to grow, Ethereum will face two major threats. The primary risk is the potential alienation of those who truly care about decentralization and core developers, leading to community erosion. The secondary risk is making incorrect technical choices; institutional pressure may drive inappropriate technical decisions, such as a 150-millisecond block time that benefits high-frequency trading but hinders regular users from running nodes, leading to geographic centralization.

Vitalik emphasized that Ethereum should focus on its global, permissionless, and censorship-resistant protocol characteristics, maintain a strong core community, and uphold the values that differentiate Ethereum from traditional finance.

It is reported that currently nine Wall Street companies hold over $18 billion worth of ETH, with predictions suggesting institutional holdings may exceed 10% of Ethereum's total supply.

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