Over the years, Ethereum has established itself as Bitcoin’s second-best competitor in terms of technology, innovation, and operate cases. If many consider Bitcoin to be “digital gold”, Ether would be “digital silver.” However, like Bitcoin, Ethereum has been the subject of much criticism and attacks, with many claiming that its popularity will come to an end. The latest is Justin Bon’s Twitter/X post stating that Ethereum “is cooked.”
Cyber Capital founder and CIO Justin Bons has sparked heated debates on social media with his views on the future of Ethereum, the role of Layer 2 venture funding, and token dynamics. His outspoken criticism on issues such as self-interest and centralization has raised questions about Ethereum’s long-term reputation.
Bons’ statement about Ethereum on Twitter/X was met with dozens of comments from cryptocurrency enthusiasts, with some supporting his site and others questioning his approach.
1/9) Ethereum is cooked
Broken by L2 VC funding and tokens, no one scales L1 ETH anymore; they won’t allow it!
Therefore, there is no hope for ETH anymore
Following bitcoiners into irrelevance with quasi-religious word salads to justify their mediocrity: 🧵
— Justin Bons (@Justin_Bons) October 28, 2024
Ethereum is now “irrelevant,” Bons says
In a Twitter/X thread, Bons gives several reasons why the Ethereum blockchain is “cooked” and heading down the path of irrelevance. He stated that the main reason for its demise is self-interest, which prioritizes the development of layer 2 (L2) chains instead of scaling the base layer (L1).
Bons went on to say that Ethereum started as a attractive blockchain, but recent events may cause it to be forgotten. He particularly highlighted the network’s L2, which he believes can censor, steal and freeze users’ funds. According to Bons, these L2s are fragmented and centralized, which affects the user experience, making the Solana blockchain a better option.
Ether market cap currently at $314 billion. Chart: TradingView.com
Uniswap is moving to Unichain
Ethereum also faces another key problem, which is Uniswap migrates to its own blockchain “Unichain”. On October 10 last year, UniSwap Labs, the parent company of UniSwap, announced that it would launch its blockchain. This latest blockchain or rollup is built on the Ethereum blockchain and aims to share its revenues with users who stake their UNI tokens.
Ether price down in the last week. Source: CoinGecko
With this novel solution, Etherum is expected to lose a significant revenue stream. Traditionally, most of Uniswap’s revenue from fees is collected by ETH holders. According to Michael Nadeau, Uniswap earned approximately $1.3 billion in settlement and trading fees across five blockchains.
However, Uniswap and token holders made “zero” on this revenue. Instead, Ethereum validators received over $368 million for sending ETH to secure the blockchain. With the launch of Unichain, Uniswap will capture this value and filter it to token holders.
If you think L2 are bearish $ETHthen you should at least note that they are mega bears for the L1 alt.
At least L2s will have to pay for blobs when goals are met and everyone uses them $ETH as their main onchain currency.
L2 are also the fastest growing…
— AdrianoFeria.eth 🦇🔊 🛡️ (@AdrianoFeria) October 28, 2024
Ethereum receives community support
Bons’ tirades may have attracted a few supporters, but many Twitter/X users defended the Ethereum blockchain. For example, AdrianoFeria.eth slammed Bons for living in another universe. He defended the Ethereum blockchain, arguing that L2 chains cannot be bearish on L1 ETH, but should apply to all L1s.
He added that Solana is not the fastest-growing network and continued that Ethereum is still flourishing thanks to institutional partnerships. Others commented that Bons is biased and will always be hostile towards cryptocurrencies.
Some insiders say Uniswap’s announcement makes it complex to predict what will happen next. According to Sasha Ivanov of Waves, the migration will not be completed until at least the end of the year. If this happens, the effect will depend on whether Uniswap connects to the Ethereum blockchain or other shrewd contract-ready chains.
Featured image from Token Metrics, chart from TradingView
