For years, Ethereum has proven itself as Bitcoin’s second-best competitor in terms of technology, innovation, and use cases. If many consider Bitcoin to be ‘digital gold’, Ethereum would be ‘digital silver’. However, like Bitcoin, Ethereum has been the subject of much criticism and attacks, with many claiming that its popularity will end. The latest is Justin Bon’s post on Twitter/X stating that Ethereum is “cooking”.
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 financing, and token dynamics. His outspoken criticisms of issues of self-interest and centralization have raised questions about Ethereum’s long-term reputation.
Bons’ take on Ethereum on Twitter/X received dozens of responses from crypto enthusiasts, some supporting his side and others challenging his views.
1/9) Ethereum is cooked
Corrupted by L2 VC funding and tokens, no one is scaling ETH’s L1 anymore; they won’t allow it!
Therefore, there is no hope left for ETH
The bitcoiners follow into irrelevance with quasi-religious word salads justifying their mediocrity: 🧵
— Justin Bons (@Justin_Bons) October 28, 2024
Ethereum is now ‘irrelevant’, claims Bons
In a Twitter/X thread, Bons gives several reasons why the Ethereum blockchain has “cooked” and is heading down the path of irrelevance. He stated that the main reason for its demise is self-interest, which prioritizes the development of Layer 2 (L2) chains instead of scaling the base layer (L1).
Bons further shared that Ethereum started out as a beautiful blockchain, but recent developments could push it into obscurity. He specifically highlighted the chain’s L2s, which he said can censor, steal and freeze users’ funds. According to Bons, these L2s are fragmented 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 is moving to Unichain
Ethereum is also facing another critical issue, with Uniswap migrates to its own blockchain, the ‘Unichain’. Last October 10, UniSwap Labs, the parent company of UniSwap, announced that it will launch its blockchain. This latest blockchain or rollup is built on the Ethereum blockchain and aims to share revenue with users who stake their UNI tokens.
Ether price down in the last week. Source: CoinGecko
It is expected that Ethereum will lose a significant revenue stream due to this new arrangement. Traditionally, the majority of Uniswap’s revenue comes from fees collected from ETH holders. According to Michael Nadeau, Uniswap earned approximately $1.3 billion in settlement and trading fees for five blockchains.
However, Uniswap and its token holders earned “zero” from this revenue. Instead, Ethereum validators were paid more than $368 million for posting ETH to secure the blockchain. With the launch of Unichain, Uniswap will capture this value and filter it to its token holders.
If you think L2s are bearish $ETHthen you should at least acknowledge that they are mega bearish on alt L1s.
At the very least, L2s will have to pay for blobs once the goals are met, and they use them all $ETH as their primary onchain currency.
L2s are also the fastest growing…
— AdrianoFeria.eth 🦇🔊 🛡️ (@AdrianoFeria) October 28, 2024
Ethereum gets community support
Bons’ rants may have attracted some followers, but many users on Twitter/X defended the Ethereum blockchain. For example, AdrianoFeria.eth hit 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 so for all L1s.
He added that Solana is not the fastest growing chain and continued that Ethereum is still flourishing thanks to institutional partnerships. Others noted that Bons is biased and will always take a hostile stance towards crypto.
Some insiders say Uniswap’s announcement makes predicting what will happen next difficult. According to Waves’ Sasha Ivanov, the migration won’t be complete until at least the end of the year. If this happens, the effect will depend on whether Uniswap will bridge to the Ethereum blockchain or to other chains ready for smart contracts.
Featured image of Token Metrics chart from TradingView