Legendary Trader Peter Brandt has come for Ethereum (ETH) once again as he has pointed out the flaws of the Proof-of-Stake (PoS) blockchain protocol. 

The Peter Brandt Criticism of Ethereum

Despite being a pro-crypto financial analyst, Peter Brandt is not a fan of Ethereum. In his latest post about the asset, Peter Brandt called it a “junk coin” despite the devotion that is showered on it by its proponents.

Ethereum has a unique place in the evolution of blockchain and the decentralized ecosystem. Founded in 2015, it elevated the functionalities associated with Bitcoin as a payment coin by introducing smart contracts. With these programmable contracts, many applications were born to form the foundation of the Decentralized Finance (DeFi) ecosystem.

Despite the legacy it has set, Peter Brandt believes the coin is best described as junk in terms of its potential as a store of value. The legendary trader went as far as calling it a Bitcoin pretender whose functionality is also junk.

I get tired of saying it, but $ETH is a junk coin despite mindless devotion of Etheridiots.
As a store of value it is junk – a $BTC pretender
Its functionality is also junk – difficult to deal with L2s and outrageous gas fees
Of course it will always attract “investors” pic.twitter.com/7KAYMiwsnf

— Peter Brandt (@PeterLBrandt) April 4, 2024

It is worth noting that Ethereum is the crypto industry’s second-largest cryptocurrency by market capitalization. At this time of writing, the coin has inked a mild uptick of 0.9% and is changing hands for $3,328.06. The market capitalization is pegged at $399,579,175,493. 

In all this, Peter Brandt chose to highlight the flaws of Ethereum rather than the obvious wins. He noted that it is still difficult to deal with Ethereum L2s because of their associated outrageous fees. What remains to be clarified is whether or not Peter Brandt has transacted on the L2 protocols lately. 

This is because there are multiple reports that the recently launched Ethereum Dencun Upgrade significantly slashed fees on L2 protocols.

Bearish ETH Price Forecast

This is not Peter Brandt’s first time coming hard against Ethereum. In December 2023, the trader announced that he was shorting Ethereum as he believed the coin was doomed to crash. His bearish projection for Ethereum price at the time comes to a low of $600.

While Brandt did not give an actual projection in the current comments about the coin, he ended his note saying investors will still be flocking to bag the asset despite the obvious flaws.

The investor sentiment will further heighten if the United States Securities and Exchange Commission (SEC) approves spot Ethereum ETF for trading. However, the odds of this is low considering the potential securities classification the regulator is currently looking to tag ETH as an investment contract.

The post Peter Brandt Slams “Outrageous” Ethereum Gas Post-Dencun Upgrade appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am