Quinn Thompson declares Ethereum for 'completely dead' as an investment - debates about the future of the leading blockchain broke out

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The controversy around Ethereum: is ETH really "completely dead"?

Last weekend, Quinn Thompson, Chief Investment Officer of the HedgeGrade Lekker Capital, caused a significant sensation in the crypto industry. In a article published on X, he described Ethereum (ETH) as "completely dead" - at least from an investment perspective. This controversial statement resulted in numerous reactions within the community and raised questions about the future and the economic value of Ethereum.

"ETH as an investment is completely dead"

Thompson based his assessment on the basic economic weaknesses of the Ethereum network. Despite a market capitalization of over $ 225 billion, he observes a decline in user growth, transactions and income from fees. For Thompson it is clear: "ETH no longer offers an investment argument. A network with applications? Yes. An investment? Under no circumstances."

Layer 2 as the cause of value splinters

One of the causes called Thompson for the deteriorated investment thesis is the growth of Layer 2 solutions (L2S). These scaling solutions would withdraw significant value shares in the main network. In addition, the growing number of tokens in the Ethereum ecosystem leads to fragmentation. Nic Carter, partner at Castle Island Ventures, said drastically and said: "Eth was buried under an avalanche of his own tokens.

Experts defend Ethereum

The sharp criticism was not without resistance. Professor Omid Malekan from Columbia Business School defended the role of Layer-2 networks. He argues that they are essential for the scaling of Ethereum, which is why it is understandable that they claim part of the value for themselves. "Security is not free," he emphasized.

also Scott Johnsson from VB Capital clearly contradicted Thompson. He pointed out the unique token architecture of Ethereum with a deflationary combustion mechanism that acts as an economic strength. "If ETH's consumption is comparable to that of oil, it is much more likely that the price of ETH is worth," he said.

Future of Ethereum remains controversial

The technological relevance of Ethereum is undoubtedly undisputed. But the discussion about the long-term investment value of ETH token is in full swing. Ethereum was once the undisputed king of the Defi world, but sees growing competition exposed to other Blockchains. In this new reality it is difficult for the network to claim its economic supremacy.

The debate about Ethereum and its future value will certainly remain controversial and could be crucial for the development of the entire cryptom market.