Bitcoin Advocate Fred Krueger Issues Stark Warning About Ethereum – Here’s What You Need to Know
On February 21, popular Bitcoin maximalist Fred Krueger issued a warning about the world’s first-ever smart contract network, Ethereum.
In a post on X (formerly Twitter), Krueger stated that Ethereum is rapidly losing its essence with growing competition in decentralized finance (DeFi).
According to the Bitcoin advocate, Ethereum has fallen down the value chain and is now more of a meme coin like Shiba Inu despite its $361 billion market valuation.
Giving his reasons for this pessimistic outlook, Krueger pointed to the dwindling active users of the smart contract network. He noted that the Ethereum blockchain’s daily active users (DAUs) have dropped from 120,000 in early 2021 to just 66,000 over the last year.
ETH is completely detached from reality. A deep dive.
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ETH is at $3,000. Surely this must mean that a ton of people are using ETH, and that this number is only going up, right?
Nope.
Eth, the chain has dropped from 120K… pic.twitter.com/141GwtB0yz
— Fred Krueger (@dotkrueger) February 21, 2024
Krueger also reviewed Ethereum’s most popular decentralized exchange (DEX) Uniswap V3. He noted that the automated market maker (AMM) protocol has also faced user decline, with its 2020 user base of 60,000 dropping to 16,000 in the stated period.
Further damning details shared by Krueger showed that the Ethereum blockchain is quite pricey and has a slow transaction output. The crypto ecosystem has Solana, Avalanche, Near, Cardano, and other base-layer protocols with lower fees and higher transaction output.
To him, Ethereum’s presence in this ecosystem is becoming irrelevant, reducing its chances of becoming a store of value for users like Bitcoin.
Ethereum introduced the ability to build decentralized applications
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