{"id":19665,"date":"2025-03-29T05:46:33","date_gmt":"2025-03-29T05:46:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19665"},"modified":"2025-03-29T05:46:33","modified_gmt":"2025-03-29T05:46:33","slug":"greedy-l2s-are-the-reason-eth-is-a-completely-dead-investment-vc","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19665","title":{"rendered":"Greedy L2s are the reason ETH is a ‘completely dead’ investment: VC"},"content":{"rendered":"
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\"Greedy<\/p>\n

Ether’s (ETH<\/a>) declining appeal as an investment comes from layer-2\u2019s draining value from the main network and a lack of community pushback on excessive token creation, a crypto venture capitalist says.<\/p>\n

\u201cThe #1 cause of this is greedy Eth L2s siphoning value from the L1 and the social consensus that excess token creation was A-OK,\u201d Castle Island Ventures partner Nic Carter said<\/a> in a March 28 X post.<\/p>\n

Ether \u201cdied by its own hand\u201d<\/h2>\n

\u201cETH was buried in an avalanche of its own tokens. Died by its own hand,\u201d Carter said. He said this in response to Lekker Capital founder Quinn Thompson\u2019s claim that Ether is \u201ccompletely dead\u201d as an investment.<\/p>\n

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Source: <\/em>Quinn Thompson<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

\u201cA $225 billion market cap network that is seeing declines in transaction activity, user growth and fees\/revenues. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not,\u201d Thompson said<\/a> in a March 28 X post.\u00a0<\/p>\n

The ETH\/BTC ratio \u2014 which shows Ether\u2019s relative strength compared to Bitcoin (BTC) \u2014 is sitting at 0.02260, its lowest level in nearly five years, according<\/a> to TradingView data.\u00a0<\/p>\n

At the time of publication, Ether is trading at $1,894, down 5.34% over the past seven days, according<\/a> to CoinMarketCap data.<\/p>\n

\"Cryptocurrencies\"
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Ether is down 17.94% over the past 30 days. Source: <\/em>CoinMarketCap<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Meanwhile, Cointelegraph Magazine reported in September 2024 that fee revenue<\/a> for Ethereum had \u201ccollapsed\u201d by 99% over the previous six months as \u201cextractive L2s\u201d absorbed all the users, transactions and fee revenue while contributing nothing to the base layer.\u00a0<\/p>\n

Around the same time, Cinneamhain Ventures partner Adam Cochran said Based Rollups<\/a> could solve the issue of Ethereum\u2019s layer-2 networks pulling liquidity and revenue from the blockchain\u2019s base layer.<\/p>\n

Cochran said Based Rollups could \u201cdirectly impact the monetization of Ethereum by making a pretty fundamental change to incentive structures.\u201d<\/p>\n

Related: <\/strong><\/em>Ethereum futures premium hits 1+ year low \u2014 Is it time to buy the ETH bottom?<\/strong><\/em><\/a><\/p>\n

Despite optimism toward the end of last year about Ether reaching $10,000 in 2025<\/a> \u2014 especially after reaching $4,000 in December, the same month Bitcoin touched $100,000 for the first time \u2014 it has since seen a sharp decline alongside the broader crypto market downturn.<\/p>\n

Standard Chartered added to the bearish outlook via a March 17 client letter<\/a>, which revised down their end of 2025 ETH price estimate from $10,000 to $4,000, a 60% reduction.\u00a0<\/p>\n

However, several crypto traders, including pseudonymous traders Doctor Profit and Merlijn The Trader, are \u201cinsanely bullish\u201d and argue that Ether could<\/a> be the \u201cbest opportunity in the market.\u201d<\/p>\n

\"Cryptocurrencies\"
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Source: <\/em>Merlijn The Trader<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Magazine:<\/strong><\/em> Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder<\/strong><\/em><\/a><\/p>\n