The greedy l2 are the reason why ETH is a 'completely dead' investment: VC

The decrease in the attractiveness of Ether (eth) as an investment comes from the drainage value of layer 2 of the main network and the lack of community setback in the creation of excessive Token, says a capitalist of cryptographic risk.

“The number 1 cause of this is the siphon value of eth l2s of L1 and the social consensus that the creation of excessive tokens was A-Ok”, Castle Island Ventures partner Nic Carter <a target="_blank" data-ct-non-breakable="null" href="https://x.com/nic__carter/status/1905722880484348104″ rel=”null” target=”null” text=”null” title=”null”>saying In a March 28 position x.

Ether “died by his own hand”

“eth was buried in an avalanche of his own chips. He died by his own hand,” Carter said. He said this in response to the statement of the founder of Lekker Capital, Quinn Thompson, that Ether is “completely dead” as an investment.

“A market capitalization network of $ 225 billion that is seeing decreases in the activity of transactions, growth of users and rates/income. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely”, Thompson <a target="_blank" data-ct-non-breakable="null" href="https://x.com/qthomp/status/1905624997176951141″ rel=”null” target=”null” text=”null” title=”null”>saying In a March 28 position x.

The eth/btc ratio, which shows Ether's relative force compared to bitcoin (btc), is at 0.02260, its lowest level in almost five years, according To TrainingView Data.

At the time of publication, Ether is quoted at $ 1,894, 5.34% less in the last seven days, <a target="_blank" data-ct-non-breakable="null" href="https://coinmarketcap.com/currencies/ethereum/” rel=”null” target=”null” text=”null” title=”null”>according to coinmarketcap data.

Meanwhile, Co -Intelegraph magazine reported in September 2024 that tariff revenues for ethereum had “collapsed” 99% in the last six months, since the “extractive L2s” absorbed all users, transactions and tariff income while not contributing to the base layer.

Almost at the same time, Cinneamhain Ventures's partner Adam Cochran said that the based accumulators could solve the problem of ethereum layer 2 networks that extract liquidity and income from the base layer of the block chain.

Cochran said that cudlos based could “directly impact ethereum's monetization by making a quite fundamental change to incentive structures.”

Related: ethereum Futures Premium hits more than 1+ low year: Is it time to buy the eth fund?

Despite the optimism towards the end of last year, the ether reaches $ 10,000 in 2025, especially after reaching $ 4,000 in December, the same month in bitcoin played $ 100,000 for the first time, since then it has seen a strong decrease together with the broader recession of the cryptographic market.

Standard Chartered added Bearish Outlook through a customer letter on March 17, which reviewed its end of 2025 eth price estimate from $ 10,000 to $ 4,000, a 60%reduction.

However, several cryptographic merchants, including the pseudonym merchants of Doctor, and Merlijn The Trader, are “incredibly optimistic” and argue that Ether <a target="_blank" data-ct-non-breakable="null" href="https://x.com/DrProfitCrypto/status/1893996574357025105″ rel=”nofollow noopener” target=”_blank” text=”null” title=”https://x.com/DrProfitCrypto/status/1893996574357025105″>could Be the “best opportunity in the market.”

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