For years, Ethereum has established itself because the second-best competitor to Bitcoin regarding technology, innovation, and use cases. If many consider Bitcoin as ‘digital gold,’ Ethereum could be ‘digital silver.’ Nonetheless, similar to Bitcoin, Ethereum has been the topic of many criticisms and attacks, and plenty of have claimed that its popularity will end. The newest is Justin Bon’s post on Twitter/X, which says that Ethereum “is cooked.”

Cyber Capital’s founder and CIO, Justin Bons, has ignited vigorous debates on social media together with his views on Ethereum’s future, the role of Layer 2 enterprise funding, and token dynamics. His outspoken critiques on issues like self-interest and centralization have sparked questions on Ethereum’s long-term fame.

Bons’ tackle Ethereum on Twitter/X was met with dozens of comments from crypto enthusiasts, some supporting his side and others difficult his take.

1/9) Ethereum is cooked

Corrupted by L2 VC funding & tokens, no one is scaling ETH’s L1 anymore; they may not allow it!

That’s the reason there isn’t a hope left for ETH anymore

Following the bitcoiners 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 offers several the explanation why the Ethereum blockchain is “cooked” and taking place the trail of irrelevance. He stated that the first reason for its downfall is self-interest, which prioritizes the event of Layer 2 (L2) chains as an alternative of scaling its base layer (L1).

Bons further shared that Ethereum began as a fantastic blockchain, but recent developments may push it to oblivion. He specifically highlighted the chain’s L2s, which he said can censor, steal, and freeze users’ funds. In response to Bons, these L2s are fragmented and centralized, which impacts the users’ experience, making the Solana blockchain a greater option.

Ether market cap currently at $314 billion. Chart: TradingView.com

Uniswap Moving To Unichain

Ethereum can be facing one other crucial problem, with Uniswap, because it migrates to its own blockchain, the “Unichain.” Last October tenth, UniSwap Labs, UniSwap’s parent company, announced that it should launch its blockchain. This newest blockchain or rollup is built on the Ethereum blockchain and intends to share its revenues with users who stake their UNI tokens.

Ether price down within the last week. Source: CoinGecko

Ethereum is predicted to lose a considerable revenue stream with this recent arrangement. Traditionally, the majority of Uniswap’s revenues from fees are collected by ETH holders. In response to Michael Nadeau, Uniswap earned around $1.3 billion from settlement and trading fees across five blockchains.

Nonetheless, Uniswap and its token holders earned “zero” from this revenue. As a substitute, Ethereum validators were paid over $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.

In case you think L2s are bearish for $ETH, then you must not less than recognize that they’re mega bearish for alt L1s.

Not less than L2s could have to pay for blobs once targets are reached, they usually are all using $ETH as their primary onchain currency.

L2s are also the fastest growing…

— AdrianoFeria.eth 🦇🔊 🛡️ (@AdrianoFeria) October 28, 2024

Ethereum Gets Community Support

Bons’ tirades could have attracted just a few supporters, but many users on Twitter/X defended the Ethereum blockchain. For instance, AdrianoFeria.eth hit Bons for living in a special universe. He defended the Ethereum blockchain, arguing that L2 chains can’t be bearish on ETH L1 but must be for all L1s.

He added that Solana isn’t the fastest-growing chain and continued that Ethereum remains to be thriving because of institutional partnerships. Others commented that Bons is biased and can all the time take a hostile approach to crypto.

Some insiders say that Uniswap’s announcement makes predicting what is going to occur next tricky. In response to Sasha Ivanov of Waves, the migration won’t be accomplished by not less than year-end. If it happens, the effect is determined by whether Uniswap will bridge to the Ethereum blockchain or other smart contract-ready chains.

Featured image from Token Metrics, chart from TradingView