For years, Ethereum has positioned itself as the second leading competitor to Bitcoin in terms of technology, innovation, and use cases. If many consider Bitcoin to be ‘digital gold,’ Ethereum will be ‘digital silver.’ However, like Bitcoin, Ethereum has been the subject of many criticisms and attacks, and many have argued that its popularity will fade. The latest is Justin Bon’s post on Twitter/X, saying that Ethereum is “cooked.”
Cyber Capital’s founder and CIO, Justin Bons, 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 of issues such as self-interest and centralization has raised questions about Ethereum’s long-term reputation.
Bons’ take on Ethereum on Twitter/X was met with a flurry of comments from crypto enthusiasts, some supporting his side and others challenging his take.
1/9) Ethereum is cooked
L2 VC funding and tokens ruined, no one scales ETH’s L1; they won’t let you!
This is why there is no hope left for ETH
Following bitcoiners from being inconsistent with religious word salads that justify their smallness: 🧵
– Justin Bons (@Justin_Bons) October 28, 2024
Ethereum Is Now ‘Irrelevant,’ Asks Bonds
In the line of Twitter / X, Bons gives several reasons why the blockchain of Ethereum is “cooked” and goes down the path of incompatibility. He pointed out that the main reason for its downfall is profiteering, which prioritizes the development of Layer 2 (L2) chains instead of scaling its base layer (L1).
Bons also shared that Ethereum started as a great blockchain, but recent developments may make it forgettable. He specifically highlighted the chain’s L2s, which he said can spy, steal, and freeze users’ funds. According to Bons, these L2s are separate 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 Go to Unichain
Ethereum is also facing another important issue, with Uniswap, as it migrates to its own blockchain, “Unichain.” Last October 10, UniSwap Labs, the parent company of UniSwap, announced that it will launch its own blockchain. This new blockchain or rollup is built on the Ethereum blockchain and aims to share revenue with users who participate in their UNI tokens.
Ether price down in the last week. Source: CoinGecko
Ethereum is expected to lose a lot of money circulation with this new arrangement. Traditionally, Uniswap’s total revenue from fees is collected by ETH holders. According to Michael Nadeau, Uniswap has received approximately $1.3 billion in settlement and trading fees on five blockchains.
However, Uniswap and its token holders received “zero” from this revenue. Instead, Ethereum guarantors were paid more than $368 million for sending ETH to secure the blockchain. With the launch of Unichain, Uniswap will capture this value and filter it from its token holders.
Assuming the L2s are there $ETHthen you should at least note that they are mega bearish on alt L1s.
At least the L2s will have to pay for the blobs once the target is reached, and they all use it $ETH as their primary onchain currency.
L2s are also growing rapidly…
— AdrianoFeria.eth 🦇🔊 🛡️ (@AdrianoFeria) October 28, 2024
Ethereum Gains Community Support
Bons’ tirades may attract few followers, but many users on Twitter/X have defended the Ethereum blockchain. For example, AdrianoFeria.eth beat Bons for living in a different place. He defended the Ethereum blockchain, arguing that L2 chains cannot be bearish on ETH L1 but should be all L1s.
He added that Solana is not a fast-growing chain and continued that Ethereum is still growing due to institutional cooperation. Some have noted that Bons is biased and will always take a hostile approach to crypto.
Some insiders say Uniswap’s announcement makes predicting what will happen next difficult. According to Sasha Ivanov of Waves, the migration will not be completed until at least the end of the year. If it does, the outcome depends on whether Uniswap will join the Ethereum blockchain or other smart contract-ready chains.
Featured image from Token Metrics, chart from TradingView