Catenaa, Thursday, October 09, 2025- Investment firm VanEck has cautioned Ethereum investors that growing corporate digital asset treasuries may increase dilution risks for non-stakers as the network shifts from fee-driven yields toward a monetary asset model.
Ethereum Treasuries now valued at $135 billion,
VanEck says that declining Layer-1 fee revenue and rising Layer-2 activity could reduce returns for holders who do not stake ETH.
The warning accompanies VanEck’s September report highlighting the role of volatility-driven investors, including Bitmine and Strategy, in driving the digital asset treasury boom.
Many digital asset treasuries now trade below net asset values, raising concerns over the sustainability of volatility-based funding mechanisms.
Ethereum’s upcoming Fusaka upgrade, scheduled for December 3, is expected to accelerate Layer-2 adoption, further impacting fee revenue and heightening dilution for unstaked ETH.
Despite market pressures, institutional accumulation of ETH continues. Bitmine recently acquired 1.95 million ETH valued at $8.66 billion, nearly 2% of circulating supply, while SharpLink Gaming and Ether Machine expanded their holdings to 838,152 ETH and 495,362 ETH, respectively.
Fusaka introduces PeerDAS technology to increase data verification efficiency and network capacity, reducing congestion and improving settlement speed.
VanEck emphasized that as ETH increasingly functions as a monetary asset with staked yields providing the main economic incentive, non-stakers face elevated dilution risk. Investors and institutions are urged to consider staking strategies to maintain exposure to Ethereum’s growing Layer-1 security and yield potential.
