The post Is ETH Dead as an Investment? Analysts Weigh In appeared on BitcoinEthereumNews.com.

Ether’s (ETH) underperformance as an asset has continued to spark criticism and speculation in the crypto community, with many expressing their displeasure at the Ethereum network’s current trajectory. Quinn Thompson, founder of the discretionary macro hedge fund Lekker Capital, insists that ETH is now completely dead as an investment. While some analysts and market participants do not agree with him, others concur with him, giving reasons for their opinions. ETH is Dead as an Investment To substantiate his stance, Thompson mentioned that ETH, an asset with a market cap of $225 billion, is seeing a decline in transaction activity, user growth, fees, and revenue. Although the Ethereum network still has utility, he believes it is dead as an investment. “There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not,” the Lekker Capital founder stated. In alignment with Thompson’s view, Nic Carter, co-founder of blockchain data aggregator Coinmetrics and partner at the blockchain venture capital firm Castle Island Ventures, explained why ETH is dead as an investment. According to Carter, the main reason is that greedy Ethereum layer-2 networks are siphoning value from the blockchain, and that there is a social consensus that the creation of excess tokens in the Ethereum ecosystem is okay. The analyst said ETH died by its own hand because it had been buried “in an avalanche of its own tokens.” Analysts Blame L2s, VCs, Bitcoin Maxis Responding to Carter’s tweet, Thompson asserted that the social consensus that found the excess token creation okay happened because the emergence of endless layer-2 chains, staking, and restaking protocols enriched the pockets of developers and team members. However, now that the situation has turned awry, no one wants to admit that the concept was wrong, especially with the market saying it was a…

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Filed under: News - @ March 30, 2025 6:16 am