Bitcoin supporter Fred Krueger has lately voiced issues about Ethereum’s (ETH) basic developments and potential regulatory hurdles. Krueger’s remarks, shared in a post on X, underscored notable statistics concerning Ethereum’s community exercise and transactional utility.
Ethereum’s Declining Utility Raises Alarms
Krueger’s critique highlighted Ethereum’s hovering worth, particularly its lately achieved two-year peak juxtaposed with declining community utilization. Despite ETH reaching $3,000, Krueger famous a big drop in Daily Active Users (DAUs) from 120,000 in 2021 to simply 66,000 previously yr.
The Bitcoin Maxi additionally highlighted the decline in consumer exercise on the blockchain’s “top app,” Uniswap V3, Ethereum’s main decentralized exchange protocol, highlighting it as a notable concern.
Krueger famous:
The high app, Uniswap V3 is barely getting 16K DAUs. I bear in mind, again in 2020 this quantity was 60K or extra. It’s positively the case the ETH as a series is now not used instantly.
Krueger additionally starkly in contrast Ethereum’s present standing and a “meme coin,” citing similarities to belongings like Shiba Inu (SHIB).
Despite Ethereum’s price performance, Krueger highlighted a perceived erosion in its utility, particularly when contrasted with different blockchain networks resembling Solana, Avalanche, and Near.
The Bitcoin Maxi continued, noting:
Of course, that doesn’t cease traders from bidding it as much as a $361 Billion greenback market cap. It actually has grow to be a kind of meme coin, much like Shiba Inu. It’s not particularily low cost ($1.50 per transaction), or quick. If you might be simply interested by reward factors for video games, or casino-style DeFi apps — Solana, Avalanche, Near and many others.. all crush it.
Regulatory Uncertainty And Community Reaction
Krueger’s critique prolonged past Ethereum’s utility to its regulatory outlook. He expressed doubts about the potential for a spot Ethereum Exchange-Traded Fund (ETF) approval, citing issues over regulatory scrutiny:
Finally, I don’t suppose Gensler goes to permit an ETH ETF. If you imagine within the Tooth Fairy, have enjoyable. I simply don’t suppose Gary desires to make his second ETF a large pre-mine. Sets a really unhealthy precedent.
The Bitcoin Maxi concluded: “Avoid ETH at all costs.” Despite Krueger’s evaluation, the ETH group’s perception in ETH stays unshaken. Under Krueger’s put up, many have been discovered countering Krueger’s comment.
An X consumer named “n o k a” commenting on Krueger’s put up identified that Ethereum has a roadmap centered on scalability by means of a modular and rollup-centric method. They argue that solely contemplating Daily Active Users (DAU) on the mainnet is deceptive, akin to assessing Bitcoin’s worth based mostly completely on its mainnet utilization.
While they agree that depicting Ethereum as sound cash “was/is clownish,” they famous: “but you [Fred Krueger] discredit yourself here.”
Even L2s like Arbitrum have been in decline final 12 months.
This shouldn’t be the case that each one is effectively in ETH-land pic.twitter.com/oOIPwyCrj2
— Fred Krueger (@dotkrueger) February 21, 2024
Another consumer, “John Doe,” argues that there was a big decline in whole worth locked (TVL) throughout the DeFi area, indicating a pattern of decentralized finance (DeFi) customers lowering their publicity to danger earlier than probably reinvesting sooner or later.
Sir, as a lot as you might be effectively revered within the ETF area, you’re not effectively conscious of how Defi Cycles work, simply try Defillama and see the TVL charts from the final bull run v/s in the present day. There’s been sharp decline throughout the area. This is degens de-risking, earlier than we Ape in once more
— John Doe (@h0dlboi) February 21, 2024
Featured picture from Unsplash, Chart from TradingView
