Ethereum’s Declining Utility Raises Concerns
Crypto supporter Fred Krueger has raised concerns about Ethereum’s fundamental trends and potential regulatory challenges. He pointed out notable statistics regarding Ethereum’s network activity and transactional utility.
- Krueger noted a significant drop in Daily Active Users (DAUs) on the Ethereum network, from 120,000 in 2021 to just 66,000 in the past year.
- He also highlighted the decline in user activity on Uniswap V3, Ethereum’s leading decentralized exchange protocol.
Krueger compared Ethereum’s current status to a “meme coin” like Shiba Inu, emphasizing a perceived erosion in its utility compared to alternative blockchain networks such as Solana, Avalanche, and Near.
- He mentioned that Ethereum is not particularly cheap or fast when it comes to transaction fees and speed.
- Krueger expressed doubts about the possibility of an Ethereum Exchange-Traded Fund (ETF) approval due to regulatory concerns.
Regulatory Uncertainty And Community Reaction
Many members of the Ethereum community disagreed with Krueger’s assessment and defended the platform:
- Some argued that assessing Ethereum’s value solely based on Daily Active Users (DAU) on the mainnet is misleading.
- Others pointed out that scalability solutions like layer-two protocols have been in decline across the entire space, not just for Ethereum.
- Another user mentioned that there has been a decline in total value locked (TVL) across the DeFi space, indicating a trend of users reducing their exposure to risk before potentially reinvesting in the future.
Despite Krueger’s concerns, the Ethereum community remains confident in the platform’s potential.
Source: X
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