2021-11-17 16:31 |
A cryptocurrency analyst and Economist has foreseen the eventual decline of Ethereum as a network.In its place, Bitcoin and Solana will win because of their stellar qualities and their simplistic approach.Ethereum has been plagued by rising gas fees but has still managed to rack impressive feats over the last few months.
Alex Kruger thinks Ethereum is juggling a lot of balls and that will ultimately lead to its failure. His theory has sparked a series of discussions into Ethereum’s future in the cryptocurrency ecosystem.
Ethereum of All TradesAlex Kruger, a veteran trader has voiced his concerns over Ethereum’s future in the coming years. The economist worries that the second-largest cryptocurrency is doing a lot simultaneously and could be the perfect recipe for failure.
“Bitcoin + Solana > Ethereum. It’s just common sense. Ethereum is trying to do it all itself. That’s how you fail. Bitcoin will always be safer and more decentralized. Solana will always be faster and cheaper,” he tweeted.
Ethereum’s wide use case scenario, ranging from DeFi, DApps, and NFTs has seen it rise to occupy over 19% of the crypto market. Being a first mover, Ethereum has often adopted a trial and error method which is evident in the network’s over 13 hard forks in under 7 years. Then, there’s the problem of soaring gas fees that threaten the very existence of the network, leading to the herculean transition to Proof-of-Stake – Ethereum 2.0.
Kruger’s theory was supported by Dan Held, Growth Lead at Kraken who said that the Ethereum scenario is the “classic startup problem of trying to do/be everything at once, but not doing one thing really well.” Kruger’s hypothesis may stem from the fact that Bitcoin has performed spectacularly well in its role as a decentralized network while Solana zeroed in on costs, speed and scalability. Bitcoin’s simplicity has seen it become the leading crypto asset for over 12 years while Solana’s features have seen it climb up the crypto ladder after a stellar performance in 2021.
Is This Always The Case?Kruger’s comments drew the ire of Ethereum’s supporters as they poked holes in the theory. They argue that Ethereum will survive the test of time because of its “nimbleness” and innovativeness. The thriving layer 2 ecosystem on Ethereum building upon the solid foundation is an indicator that the network would succeed.
Other pointers include the network recording its first consecutive week of deflationary issuance and the giant strides that it has taken towards the switch from Proof-of-Work to Proof-of-Stake. Like Bitcoin and Solana, Ethereum has set multiple all-time highs in recent weeks and has set its sights on $5K. Goldman Sachs predicts that Ethereum at $8K before the end of the year is in play.
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