Ethereum’s Surge and Expert’s Doubts
Ethereum (ETH) has hit $3,000 for the first time since April 2022. However, Fred Krueger, a Bitcoin ETF expert, warns that the price is “completely detached from reality.”
Why Ethereum May Be Overvalued
Krueger points out that Ethereum’s active daily users have dropped from 120,000 in 2021 to just 66,000. Even Uniswap V3, the top app on Ethereum, has seen a decline in daily users.
Krueger also compares Ethereum to meme coins like Shiba Inu, noting that its market cap of $361 billion is inflated despite its declining usage.
Ethereum Faces Competition and Regulatory Hurdles
Krueger believes Ethereum is overpriced and faces competition from other blockchains that offer lower transaction costs and faster speeds. He also doubts that the SEC will approve an ETH ETF due to concerns about pre-mining.
Crypto Community’s Response
The crypto community has mixed reactions to Krueger’s critique. Some argue that Ethereum’s roadmap and layer-2 solutions will boost usage, while others dismiss his concerns as temporary market fluctuations.
Krueger’s Broader View on Crypto
Krueger’s skepticism extends beyond Ethereum to other altcoins. He believes that they lack long-term value and are unlikely to become significant value generators.
Krueger’s Bottom Line
“Bitcoin is the revolution,” says Krueger. “Every other cryptocurrency is fighting for a much smaller use case.”
