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Bitcoin supporter Fred Krueger has lately voiced issues about Ethereum’s (ETH) elementary developments and potential regulatory hurdles. Krueger’s remarks, shared in a post on X, underscored notable statistics relating to Ethereum’s community exercise and transactional utility.

Ethereum’s Declining Utility Raises Alarms

Krueger’s critique highlighted Ethereum’s hovering value, particularly its lately achieved two-year peak juxtaposed with declining community utilization. Despite ETH reaching $3,000, Krueger famous a major drop in Daily Active Users (DAUs) from 120,000 in 2021 to simply 66,000 up to now yr.

The Bitcoin Maxi additionally highlighted the decline in consumer exercise on the blockchain’s “top app,” Uniswap V3, Ethereum’s main decentralized exchange protocol, highlighting it as a notable concern.

Krueger famous:

The prime app, Uniswap V3 is barely getting 16K DAUs. I bear in mind, again in 2020 this quantity was 60K or extra. It’s undoubtedly the case the ETH as a sequence is not used straight.

Krueger additionally starkly in contrast Ethereum’s present standing and a “meme coin,” citing similarities to property like Shiba Inu (SHIB).

Despite Ethereum’s price performance, Krueger highlighted a perceived erosion in its utility, particularly when contrasted with various blockchain networks akin to Solana, Avalanche, and Near.

The Bitcoin Maxi continued, noting:

Of course, that doesn’t cease buyers from bidding it as much as a $361 Billion greenback market cap. It actually has change into a sort of meme coin, just like Shiba Inu. It’s not particularily low cost ($1.50 per transaction), or quick. If you might be simply excited about reward factors for video games, or casino-style DeFi apps — Solana, Avalanche, Near and so on.. all crush it.

Regulatory Uncertainty And Community Reaction

Krueger’s critique prolonged past Ethereum’s utility to its regulatory outlook. He expressed doubts about the potential for a spot Ethereum Exchange-Traded Fund (ETF) approval, citing issues over regulatory scrutiny:

Finally, I don’t suppose Gensler goes to permit an ETH ETF. If you imagine within the Tooth Fairy, have enjoyable. I simply don’t suppose Gary needs to make his second ETF a large pre-mine. Sets a really dangerous precedent.

The Bitcoin Maxi concluded: “Avoid ETH at all costs.” Despite Krueger’s evaluation, the ETH neighborhood’s perception in ETH stays unshaken. Under Krueger’s publish, many have been discovered countering Krueger’s comment.

An X consumer named “n o k a” commenting on Krueger’s publish identified that Ethereum has a roadmap targeted on scalability via a modular and rollup-centric strategy. They argue that solely contemplating Daily Active Users (DAU) on the mainnet is deceptive, akin to assessing Bitcoin’s worth primarily based solely on its mainnet utilization.

While they agree that depicting Ethereum as sound cash “was/is clownish,” they famous: “but you [Fred Krueger] discredit yourself here.”

Even L2s like Arbitrum have been in decline final 12 months.

This shouldn’t be the case that every one is nicely in ETH-land pic.twitter.com/oOIPwyCrj2

— Fred Krueger (@dotkrueger) February 21, 2024

Another consumer, “John Doe,” argues that there was a major decline in complete worth locked (TVL) throughout the DeFi area, indicating a pattern of decentralized finance (DeFi) customers decreasing their publicity to danger earlier than doubtlessly reinvesting sooner or later.

Sir, as a lot as you might be nicely revered within the ETF area, you’re not nicely conscious of how Defi Cycles work, simply take a look at Defillama and see the TVL charts from the final bull run v/s at present. There’s been sharp decline throughout the area. This is degens de-risking, earlier than we Ape in once more

— John Doe (@h0dlboi) February 21, 2024

Featured picture from Unsplash, Chart from TradingView