Is Ethereum Finished? Expert Says ‘No Hope Left’ For Ether Anymore

by

As a researcher with over a decade of experience in the crypto industry, I have witnessed the rise and fall of numerous blockchain projects. The latest controversy surrounding Ethereum, sparked by Justin Bons’ claims that it is “cooked,” has caught my attention. While I respect Bons’ opinion and acknowledge his contributions to the space, I must admit that I am skeptical about his assessment.

Over an extended period, Ethereum has proven itself as a strong contender to Bitcoin in terms of technology, creativity, and practical applications, often being referred to as Bitcoin’s ‘digital silver.’ However, similar to Bitcoin, Ethereum has faced numerous criticisms and assaults, with some predicting its downfall. The most recent skepticism comes from Justin Sun on Twitter/X, who asserted that Ethereum is “on the verge of collapse.

Justin Bons, founder and Chief Investment Officer at Cyber Capital, has stirred up engaging discussions on social media platforms with his perspectives on Ethereum’s future, the significance of Layer 2 venture financing, and token behavior. His forthright criticisms concerning topics such as self-interest and centralization have raised eyebrows about Ethereum’s enduring image in the long run.

On Twitter, Bons’ perspective on Ethereum sparked a flurry of reactions from cryptocurrency fans. Some agreed with him, while others presented counterarguments to his viewpoint.

1/9) Ethereum is cooked

Corrupted by L2 VC funding & tokens, nobody is scaling ETH’s L1 anymore; they will not allow it!

That is why there is no hope left for ETH anymore

Inevitably, some individuals cling to bitcoin beliefs, using religious-like jargon to defend its mediocre performance:

— Justin Bons (@Justin_Bons) October 28, 2024

Ethereum Is Now ‘Irrelevant,’ Claims Bons

In a series of posts on Twitter or another platform, Bons presents various arguments as to why Ethereum’s blockchain appears to be in trouble and headed towards irrelevance. He argues that the main cause of its decline is self-interest, which leads developers to focus more on creating Layer 2 (L2) chains rather than addressing scaling issues at its fundamental layer (Layer 1 or L1).

Bons went on to explain that while Ethereum initially appeared as an impressive blockchain, its more recent advancements could potentially lead it towards irrelevance. He specifically pointed out the issue of Layer 2 solutions (L2s), which he argued have the capacity to censor transactions, steal funds, and freeze user assets. In his opinion, these L2s are divided and centralized, negatively influencing the overall user experience. Bons suggested that the Solana blockchain might be a more suitable alternative due to its characteristics.

Is Ethereum Finished? Expert Says ‘No Hope Left’ For Ether Anymore

Uniswap Moving To Unichain

Apart from its ongoing challenges, Ethereum is encountering another significant issue regarding Uniswap as it transitions to its self-created blockchain, referred to as “Unichain.” On October 10th, Uniswap Labs, the parent company of Uniswap, declared their intention to unveil this new blockchain. This latest blockchain or rollup is designed to operate on the Ethereum blockchain and aims to distribute its earnings among users who hold UNI tokens by staking them.

Is Ethereum Finished? Expert Says ‘No Hope Left’ For Ether Anymore

Under the new setup, Ethereum could face a significant reduction in its income source, as previously, most of Uniswap’s fee earnings, approximately $1.3 billion from transaction and trading fees across five blockchains, were accumulated by Ethereum holders. (Michael Nadeau)

In a different phrasing, Uniswap and its token owners didn’t receive any portion of the revenue generated. Instead, Ethereum validators received approximately $368 million for securing the blockchain by storing ETH. With the advent of Unichain, Uniswap aims to redirect this value towards its token holders.

If you think L2s are bearish for $ETH, then you should at least recognize that they are mega bearish for alt L1s.

At least those who speak Language Level 2 or higher will need to make payments for blobs once the targets are met, and they primarily use Ether (ETH) as their main on-chain currency.

L2s are also the fastest growing…

— AdrianoFeria.eth (@AdrianoFeria) October 28, 2024

Ethereum Gets Community Support

In a contrast to those who followed Bons’ outbursts, numerous Twitter/X users rallied behind the Ethereum blockchain. For instance, AdrianoFeria.eth criticized Bons for inhabiting a separate cosmos. He championed Ethereum, claiming that L2 chains cannot be pessimistic about ETH L1, but should be for all other L1s instead.

He added that Solana isn’t the fastest-growing chain and continued that Ethereum is still thriving thanks to institutional partnerships. Others commented that Bons is biased and will always take a hostile approach to crypto.

Experts are finding it challenging to foretell future events due to recent announcements from Uniswap, as per Sasha Ivanov of Waves. The migration may not be wrapped up by the end of this year at the earliest. The impact could vary based on whether Uniswap decides to link to the Ethereum blockchain or other platforms that support smart contracts.

Read More

2024-10-29 22:42