Bitcoin supporter Fred Krueger has raised concerns about Ethereum’s (ETH) declining network usage and utility.
Despite ETH reaching $3,000, Daily Active Users (DAUs) have dropped from 120,000 in 2021 to 66,000 in the past year.
Uniswap V3, Ethereum’s leading decentralized exchange protocol, has also seen a decline in user activity.
Regulatory Uncertainty
Krueger also expressed doubts about the possibility of a spot Ethereum Exchange-Traded Fund (ETF) approval due to regulatory scrutiny.
He believes that the Securities and Exchange Commission (SEC) is unlikely to approve an ETH ETF, setting a precedent for pre-mined assets.
Community Reaction
Despite Krueger’s assessment, the ETH community remains optimistic about the network’s future.
Some argue that Ethereum’s roadmap focused on scalability through a modular and rollup-centric approach will address the declining utility concerns.
Others point to the decline in total value locked (TVL) across the DeFi space as a sign of users reducing their exposure to risk before potentially reinvesting in the future.
