Ethereum's Market Value: Is it Overrated?
Date: 2024-02-21 Author: Dima Zakharov Categories: IN WORLD
Ethereum's Market Evaluation
Fred Krueger, the CEO of EOS Lynux and a key figure in the crypto space, has made waves with his recent remarks regarding Ethereum's market value. According to Krueger, Ethereum's soaring market value and its achievement of a new yearly high as the second most popular cryptocurrency are not grounded in fundamental reasons.
User Engagement Decline
Krueger highlights a significant decline in active daily users on the Ethereum network, dropping from 120,000 in 2021 to merely 66,000 by the beginning of 2024. He points out that one of the leading applications, Uniswap V3, now sees only 16,000 unique users per day, a stark contrast to the over 60,000 users seen in 2020.
Comparison with Competitors
The businessman argues that Ethereum faces stiff competition from other blockchains that outperform it in transaction costs and processing speed. He suggests that Ethereum's market capitalization doesn't align with its direct blockchain usage, likening its properties to meme tokens like Shiba Inu.
Market Fluctuations
Despite a brief surge to $3,000, Ethereum's market value has now retraced to levels between $2,800 to $2,900. Krueger's comments add fuel to the ongoing debate surrounding Ethereum's true worth and its sustainability in the face of increasing competition within the cryptocurrency landscape.
Krueger's Past Insights
This isn't the first time Krueger has made bold predictions. In December of last year, he speculated that the hype around the Solana crypto project was a diversion tactic to divert attention from the impending Bitcoin revolution.
