Ether\u2019s (ETH) underperformance as an asset has continued to spark criticism and speculation in the crypto community, with many expressing their displeasure at the Ethereum network\u2019s current trajectory.<\/p>\n
Quinn Thompson, founder of the discretionary macro hedge fund Lekker Capital, insists<\/a> that ETH is now completely dead as an investment. While some analysts and market participants do not agree with him, others concur with him, giving reasons for their opinions.<\/p>\n To substantiate his stance, Thompson mentioned that ETH, an asset with a market cap of $225 billion, is seeing a decline in transaction activity, user growth, fees, and revenue. Although the Ethereum network still has utility, he believes it is dead<\/a> as an investment.<\/p>\n \u201cThere is no investment case here. As a network with utility? Yes. As an investment? Absolutely not,\u201d the Lekker Capital founder stated.<\/p>\n In alignment with Thompson\u2019s view, Nic Carter, co-founder of blockchain data aggregator Coinmetrics and partner at the blockchain venture capital firm Castle Island Ventures, explained<\/a> why ETH is dead as an investment.<\/p>\n According to Carter, the main reason is that greedy Ethereum layer-2 networks are siphoning value from the blockchain, and that there is a social consensus<\/a> that the creation of excess tokens in the Ethereum ecosystem is okay. The analyst said ETH died by its own hand because it had been buried \u201cin an avalanche of its own tokens.\u201d<\/p>\n Responding to Carter\u2019s tweet, Thompson asserted<\/a> that the social consensus that found the excess token creation okay happened because the emergence of endless layer-2 chains, staking, and restaking protocols enriched the pockets of developers and team members. However, now that the situation has turned awry, no one wants to admit that the concept was wrong, especially with the market saying it was a mistake.<\/p>\n Furthermore, a pseudonymous analyst insisted<\/a> that \u201cSolana scammers\u201d and Bitcoin maximalists cheered the creation of excess tokens on Ethereum. Since venture capitalists could not \u201cshill\u201d ETH, they had to sponsor the development of infinite layer-1 networks so they could dump on retailers.<\/p>\n \u201cIf we would all come together around ETH as a community, it would be inherently strong and wouldn\u2019t need outside banks or institutions. But bitcoin maxis were and are too afraid of it because it\u2019s everything bitcoin(number go up and down coin) wants to be,\u201d the analyst said.<\/p>\n At the time of writing, ETH was<\/a> worth around $1,830, having lost almost 50% of its value from a year ago.<\/p>\n The post Is ETH Dead as an Investment? Analysts Weigh In<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Ether\u2019s (ETH) underperformance as an asset has continued to spark criticism and speculation in the crypto community, with many expressing their displeasure at the Ethereum network\u2019s current trajectory. Quinn Thompson, founder of the discretionary macro hedge fund Lekker Capital, insists that ETH is now completely dead as an investment. While some analysts and market participants […]<\/p>\n","protected":false},"author":0,"featured_media":55470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-55469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/55469"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55469"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/55469\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/55470"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}ETH is Dead as an Investment<\/h2>\n
Analysts Blame L2s, VCs, Bitcoin Maxis<\/h2>\n