Crypto researcher Justin Bons has stirred debate by declaring Ethereum “cooked,” suggesting it may be sliding into irrelevance like Bitcoin.
Bons criticized Ethereum’s reliance on Layer 2 (L2) solutions, arguing that the primary Layer 1 (L1) base is being neglected.
This hot take quickly polarized the community: some labeled Bons as pro-Solana, while others dismissed his remarks as baseless fear, uncertainty, and doubt (FUD). Bons, however, remained steadfast, inviting his critics to discuss further in an X space.
IS ETHEREUM COOKED? BON’S HOT TAKE SPARKS DEBATE
Crypto researcher Justin Bons didn’t hold back, calling Ethereum “cooked” and claiming it’s drifting into Bitcoin-style irrelevance.
Bons says ETH's focus on L2 chains has left its L1 base layer in the dust.
The crypto… pic.twitter.com/wvbBIQTbhi
— Mario Nawfal’s Roundtable (@RoundtableSpace) October 29, 2024
The controversy coincides with recent activity from the Ethereum Foundation, which sold 100 ETH (worth approximately $271,000) just hours ago, adding to its 2024 sales. So far, the Foundation has offloaded 4,066 ETH, valued at around $11.24 million, at an average price of $2,764 per ETH.
The #EthereumFoundation sold 100 $ETH($271K) again 3 hours ago.#EthereumFoundation has sold a total of 4,066 $ETH($11.24M) at an average price of $2,764 this year.https://t.co/NSUnT79m46 pic.twitter.com/h4DBtqyw4O
— Lookonchain (@lookonchain) October 30, 2024
Ethereum’s staking rewards have also become a topic of discussion. In Q3 2024, staking yields averaged around 3%, a slight decline from over 3.5% in Q1. These returns trail behind other major Layer 1 platforms like Cosmos and Solana, which offer staking rewards ranging from 7% to 21%.
However, Ethereum’s more modest rewards serve a purpose, helping to reduce inflationary pressures on the network, even if they may appear less attractive.
Ethereum's staking rewards hovered around 3% in Q3 2024, dipping from over 3.5% in Q1.
While this lags behind major Layer 1 players like Cosmos and Solana, boasting 7%-21%, #Ethereum’s lower yields play a crucial role in easing inflationary pressures on its network. pic.twitter.com/FwK5MswUOO
— Kyledoops (@kyledoops) October 29, 2024
Ethereum Still Hot Cake Among Top Institutions
Meanwhile, Ethereum remains in demand among institutional investors. On October 29, the Ethereum spot ETF saw a net inflow of $7.65 million, suggesting that while Ethereum’s growth strategy may be up for debate, interest in the platform persists.
Breaking: Bitcoin spot ETF had a total net inflow of $870 million on October 29, the highest net inflow since June 5. BlackRock ETF IBIT had an inflow of $643 million and Fidelity ETF FBTC had an inflow of $134 million. Ethereum spot ETF had a total net inflow of $7.65 million.… pic.twitter.com/uh030iP1rc
— Wu Blockchain (@WuBlockchain) October 30, 2024
As the debate rages on, Ethereum’s future direction is a focal point for investors and developers alike, with questions about whether the platform’s reliance on L2 will enhance or hinder its relevance long-term.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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