For years, ethereum has established itself as bitcoin's second best competitor in terms of technology, innovation and use cases. If many consider bitcoin as “digital gold”, ethereum” target=”_blank” rel=”noopener nofollow”>ethereum it would be 'digital silver'. However, like bitcoin, ethereum has come under a lot of criticism and attacks, with many claiming that its popularity will end. The latest is Justin Bon's post on twitter/x, which says that ethereum “is cooked.”
Cyber Capital founder and CIO Justin Bons has sparked lively 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 of issues such as self-interest and centralization has raised questions about ethereum's long-term reputation.
Bons' opinion on ethereum on twitter/x was met with dozens of comments from cryptocurrency enthusiasts, some supporting his stance and others challenging his opinion.
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1/9) ethereum cooks
Corrupted by VC L2 funding and tokens, no one scales eth L1 anymore; They won't allow it!
This is why there is no more hope for eth
Following bitcoiners into irrelevance with almost religious word salads that justify their mediocrity:
—Justin Bons (@Justin_Bons) twitter.com/Justin_Bons/status/1850927134241697869?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>October 28, 2024
ethereum is now “irrelevant”, says Bons
In a twitter/x thread, Bons offers several reasons why the ethereum blockchain is “cooked” and headed toward irrelevance. He claimed that the main reason for its downfall is self-interest, which prioritizes developing Layer 2 (L2) chains instead of scaling its base layer (L1).
Bons further shared that ethereum started out as a beautiful blockchain, but recent developments may push it into oblivion. He specifically highlighted the chain's L2s, which he said can censor, steal and freeze user funds. According to Bons, these L2s are fragmented and centralized, which affects the user experience, making the Solana blockchain a better option.
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Ether market cap currently at $314 billion. Chart: TradingView.com
Uniswap moves to Unichain
ethereum is also facing another crucial issue, with Uniswap, as crypto/winners-losers-uniswap-unichain/” target=”_blank” rel=”noopener nofollow”>migrate to its own blockchain, the “Unichain”. On October 10, UniSwap Labs, the parent company of UniSwap, announced that it will launch its blockchain. This newest blockchain or rollup is based on the ethereum blockchain and intends to share its revenue with users who stake their UNI tokens.
Ether price down in the last week. Source: ethereum" target="_blank" rel="noopener nofollow">CoinGecko
ethereum is expected to lose a substantial revenue stream with this new deal. Traditionally, most of Uniswap's fee revenue is collected by eth holders. According to Michael Nadeau, Uniswap earned around $1.3 billion in settlement and trading fees across five blockchains.
However, Uniswap and its token holders earned “zero” of this revenue. Instead, ethereum validators were paid over $368 million to post eth to secure the blockchain. With the launch of Unichain, Uniswap will capture this value and leak it to its token holders.
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If you think L2s are bearish for twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$eththen you should at least recognize that they are mega bearish for L1 alternatives.
At least the L2's will have to pay for the blobs once the goals are met, and everyone is using twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$eth as its main on-chain currency.
L2 are also the fastest growing…
— AdrianoFeria.eth (@AdrianoFeria) twitter.com/AdrianoFeria/status/1850929844374180247?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>October 28, 2024
ethereum gains community support
Bons' rants may have attracted some followers, but many users on twitter/x defended the ethereum blockchain. For example, AdrianoFeria.eth criticized Bons for living in a different universe. He defended the ethereum blockchain, arguing that L2 chains cannot be bearish on eth L1, but should be bearish for all L1s.
He added that Solana is not the fastest growing chain and continued that ethereum continues to thrive thanks to institutional partnerships. Others commented that Bons is biased and will always take a hostile approach towards cryptocurrencies.
Some experts say Uniswap's announcement makes it difficult to predict what will happen next. According to Sasha Ivanov from Waves, the migration will not be completed until at least the end of the year. If this happens, the effect depends on whether Uniswap will join the ethereum blockchain or other contract-ready smart chains.
Featured image of Token Metrics, TradingView chart
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