In a recent piece titled “ETH is completely disconnected from reality.” A deep dive,” on the X platform, Fred Krueger, renowned for his unwavering support of Bitcoin, offered a severe criticism of Ethereum (ETH), outlining troubling tendencies and predicting a grim future for the second-largest cryptocurrency by market capitalization.
Concerns over ETH’s declining user activity
Krueger began by noting that, despite Ethereum’s skyrocketing price, which indicates a vibrant ecosystem, actual usage of the Ethereum blockchain has declined significantly. He pointed out that, while ETH has risen above $3,000, the number of Daily Active Users (DAUs) on the Ethereum network has dropped from 120,000 in 2021 to a paltry 66,000 in the last year.
The drop in active users is highlighted by the declining numbers on Uniswap V3, Ethereum’s top decentralised exchange (DEX) protocol. With just 16,000 DAUs, a dramatic contrast to the 60,000+ witnessed in 2020, Krueger observed that Ethereum’s usefulness as a transactional platform seemed to be decreasing.
https://x.com/dotkrueger/status/1760148208515428599?s=20
This data is especially concerning given Ethereum’s significance in the decentralised financial (DeFi) ecosystem and its ambitions to become the foundation of numerous decentralised applications (dApps), particularly in light of the impending Dencun Upgrade.
Ethereum: Meme coin in disguise?
Krueger compared Ethereum’s present condition to that of a “meme coin,” finding comparisons with assets such as Shiba Inu (SHIB). He emphasised that, despite its growing price, Ethereum’s usefulness appears to have diminished, particularly when compared to alternative blockchain networks such as Solana, Avalanche, and Near, which provide cheaper and quicker transactions.
Krueger was also sceptical of the potential of an Ethereum Exchange-Traded Fund (ETF) clearance, citing worries about regulatory oversight.
With Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), unlikely to approve an Ethereum ETF because to probable concerns around its premined nature, Krueger warned against relying on such approval as a driver for Ethereum’s development.
