The post Vitalik Buterin Issues Warning as Ethereum Price Hits All-Time High appeared first on Coinpedia Fintech News
Ethereum price has been unstoppable, smashing through $4,956 to set a fresh all-time high. Yet despite this surge, the broader crypto market has cooled off, slipping into “Neutral” territory on the Fear & Greed Index at 50, signaling a more cautious mood among traders. On-chain data suggests Ethereum is at a “boiling point,” with heightened speculative activity driving momentum. But amid the excitement, co-founder Vitalik Buterin has raised concerns over prediction markets, warning they remain flawed as proper hedging tools.
Buterin on the Core Weakness
In a recent post, Buterin explained that prediction markets, where users bet on outcomes ranging from elections to sports, lack the design and depth needed to function like traditional hedging instruments. Unlike futures tied to the S&P 500 or Treasuries, these platforms don’t pay interest, lack liquidity, and attract mostly speculators rather than hedgers.
He highlighted that most users are unwilling to give up stable 4% APY returns on dollar-pegged assets just to lock funds into platforms like Polymarket, which currently offer no yield. Without incentives, serious risk managers stay away. Buterin believes that once yield integration becomes standard, prediction markets could finally see real growth and attract diverse participants.
Hedging in Focus as ETH Climbs
Ethereum’s near-$5,000 rally has only intensified the discussion around hedging. With profits at risk, traders are eyeing options to secure gains, but the current market lacks robust tools. Buterin argued that while traditional finance thrives on standardized contracts and deep liquidity, crypto’s prediction markets are still speculation-heavy, failing to provide the reliability of established instruments.
Platforms like Polymarket and Kalshi continue to expand, with Kalshi hitting a $2 billion valuation, but regulatory scrutiny from the SEC and CFTC looms. For now, the sector is growing in attention but not in hedging credibility.
U.S. Economic Events This Week May Trigger Wild Volatility in Crypto
,
Analysts Weigh In
Market voices are split on Ethereum’s next moves. Daan Crypto Trades noted that while ETH surged, most altcoins stayed flat or dropped 10–30%, proving that coin selection remains key. Meanwhile, EGRAG CRYPTO warned of a looming CME gap for Ethereum between $2,855 and $2,925, suggesting it may fill in the next bear market, potentially inflicting heavy losses on altcoin holders if it happens sooner.
On the bullish side, Arthur Hayes has set an ambitious $20,000 target for ETH this cycle, while institutional players like Tom Lee’s BitMine have already piled in with $45 million worth of ETH.
Ethereum’s breakout highlights the strength of its rally, but Buterin’s warning underscores a key gap in crypto’s financial infrastructure. As ETH soars, the lack of robust hedging tools could become even more pressing, leaving traders to juggle between bullish optimism and the structural risks Buterin has spotlighted.
function subscribed_popupmodal(template_id) { var templateId = ‘6’; getAllSubscriberCategoryList([templateId]); var subcribemodal = window.parent.document.getElementById(‘subscribe-modal-design’); if (subcribemodal) { var modalContent = `
Never Miss a Beat in the Crypto World!
Stay informed and gain the edge you need to navigate the crypto world. Select your subscription now
if (storeCheckedId.length === 0) { var unsubcribedPopUpmodal =
`
You’ve Unsubscribed Successfully
We’re sorry to see you go! Your subscription has been canceled. If you change your mind, you can re-subscribe anytime. Thank you for being part of our community!
Thank you for subscribing to our crypto and blockchain newsletter! You’ll now receive the latest news, insights, and updates straight to your inbox. Welcome to our community!
`;
let selectedSubscriptionsArray = selectedSubscriptionsString.split(‘,’); let subscribedCategories = selectedSubscriptionsArray.map(subscription => subscription.split(‘_’)[0]); let subscribedCategoriesString = subscribedCategories.join(‘, ‘);
subscribedmodal.innerHTML = subscribedPopupModal; if (document.getElementById(‘selectidname’)) { document.getElementById(‘selectidname’).textContent = subscribedCategoriesString; }
function closeModal(template_id) { var modalId = template_id; var modal = document.querySelector(‘#’ + modalId); // Using querySelector to find the modal
// Function to get cookies function getCookie(name) { let value = “; ” + document.cookie; let parts = value.split(“; ” + name + “=”); if (parts.length == 2) return parts.pop().split(“;”).shift(); }
// Get user token from cookies const userToken = getCookie(‘user_token’);
if (subscribewithoutData === ‘true’ && userToken) { // Call the modal function with the category ID subscribed_popupmodal(subscribe_clicked_cat_id);
// Remove the flag and category ID from localStorage localStorage.removeItem(‘subscribe_without_Login’); localStorage.removeItem(‘subscribe_clicked_id’); } });
var listItems = document.querySelectorAll(‘.subscription-options li’); if (listItems.length === 0) return;
var anyActive = false; listItems.forEach(function(item) { var checkbox = item.querySelector(‘input[type=”checkbox”]’); if (checkbox) { if (checkbox.checked) { item.classList.add(‘active’); anyActive = true; // Set anyActive to true } else { item.classList.remove(‘active’); // Remove ‘active’ class if checkbox is unchecked } } });
}
function updateButtonText(anyActive) { var subscribeButtonSpan = document.querySelector(‘.subscribe-submit .changeBtnText’); if (subscribeButtonSpan) { if (anyActive) { subscribeButtonSpan.textContent=”Subscribe Now”; } else { subscribeButtonSpan.textContent=”Unsubscribe”; } } }
function updateSubscriptionButton() { var listItems = document.querySelectorAll(‘.subscription-options li’); if (listItems.length === 0) return;
var anyActive = false; listItems.forEach(function(item) { var checkbox = item.querySelector(‘input[type=”checkbox”]’); if (checkbox) { if (checkbox.checked) { item.classList.add(‘active’); anyActive = true; // Set anyActive to true } else { item.classList.remove(‘active’); // Remove ‘active’ class if checkbox is unchecked } } });
// Update the button text based on whether any list item has the ‘active’ class updateButtonText(anyActive); } document.addEventListener(‘click’, function(event) { var clickedItem = event.target.closest(‘.subscription-options li’); if (clickedItem) { var checkbox = clickedItem.querySelector(‘input[type=”checkbox”]’); if (checkbox) { checkbox.checked = !checkbox.checked; updateSubscriptionButton(); } } });
FAQs
What is the ETH price prediction for 2025?
As per our Ethereum price forecast 2025, the ETH price could reach a maximum of $5,925.
What will Ethereum be in 5 years?
According to our Ethereum Price Prediction 2030, the ETH coin price could reach a maximum of $15,575 by 2030.
How much would the price of Ethereum be in 2040?
As per our Ethereum price prediction 2040, Ethereum could reach a maximum price of $123,678.
How much will the ETH coin price be in 2050?
By 2050, a single Ethereum price could go as high as $255,282.