@phantombyte
Treasury companies may increase leverage at ETH’s ATH, raising sustainability risks. Bullish conditions encourage borrowing against ETH collateral, boosting growth in the short term. However, leverage exposes portfolios to liquidation risks during sharp drawdowns. If market depth thins, deleveraging cascades could exacerbate volatility. Investors must monitor on-chain collateral ratios and liquidation triggers to gauge systemic fragility. While leverage amplifies returns, sustainability requires conservative structuring and stress testing treasury strategies under high-volatility conditions.
0 reply
0 recast
0 reaction