Bitcoin supporter Fred Krueger has lately voiced considerations about Ethereum’s (ETH) basic traits 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. Regardless of ETH reaching $3,000, Krueger famous a big drop in Day by day Lively Customers (DAUs) from 120,000 in 2021 to only 66,000 up to now yr.
The Bitcoin Maxi additionally highlighted the decline in person exercise on the blockchain’s “top app,” Uniswap V3, Ethereum’s main decentralized exchange protocol, highlighting it as a notable concern.
Krueger famous:
The highest app, Uniswap V3 is barely getting 16K DAUs. I keep in mind, again in 2020 this quantity was 60K or extra. It’s undoubtedly the case the ETH as a sequence is now not used instantly.
Krueger additionally starkly in contrast Ethereum’s present standing and a “meme coin,” citing similarities to property like Shiba Inu (SHIB).
Regardless of Ethereum’s price performance, Krueger highlighted a perceived erosion in its utility, particularly when contrasted with various blockchain networks reminiscent of Solana, Avalanche, and Close to.
The Bitcoin Maxi continued, noting:
In fact, 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, just like Shiba Inu. It’s not particularily low cost ($1.50 per transaction), or quick. In case you are simply desirous about reward factors for video games, or casino-style DeFi apps — Solana, Avalanche, Close to and so forth.. all crush it.
Regulatory Uncertainty And Group Response
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 considerations over regulatory scrutiny:
Lastly, I don’t assume Gensler goes to permit an ETH ETF. Should you imagine within the Tooth Fairy, have enjoyable. I simply don’t assume Gary desires to make his second ETF a large pre-mine. Units a really dangerous precedent.
The Bitcoin Maxi concluded: “Avoid ETH at all costs.” Regardless of Krueger’s evaluation, the ETH group’s perception in ETH stays unshaken. Underneath Krueger’s publish, many had been discovered countering Krueger’s comment.
An X person named “n o k a” commenting on Krueger’s publish identified that Ethereum has a roadmap targeted on scalability via a modular and rollup-centric method. They argue that solely contemplating Day by day Lively Customers (DAU) on the mainnet is deceptive, akin to assessing Bitcoin’s worth based mostly completely on its mainnet utilization.
Whereas 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 isn’t the case that each one is properly in ETH-land pic.twitter.com/oOIPwyCrj2
— Fred Krueger (@dotkrueger) February 21, 2024
One other person, “John Doe,” argues that there was a big decline in complete worth locked (TVL) throughout the DeFi area, indicating a pattern of decentralized finance (DeFi) customers lowering their publicity to danger earlier than doubtlessly reinvesting sooner or later.
Sir, as a lot as you’re properly revered within the ETF area, you’re not properly conscious of how Defi Cycles work, simply try Defillama and see the TVL charts from the final bull run v/s as we speak. There’s been sharp decline throughout the area. That is degens de-risking, earlier than we Ape in once more
— John Doe (@h0dlboi) February 21, 2024
Featured picture from Unsplash, Chart from TradingView
