Greedy L2s are the reason ETH is a ‘completely dead’ investment: VC
Ether’s performance against Bitcoin is at its lowest in nearly five years, with some investors calling it a “completely dead” investment — but not all crypto traders agree.
Ether’s (ETH) declining appeal as an investment comes from layer-2’s draining value from the main network and a lack of community pushback on excessive token creation, a crypto venture capitalist says.
“The #1 cause of this is greedy Eth L2s siphoning value from the L1 and the social consensus that excess token creation was A-OK,” Castle Island Ventures partner Nic Carter said in a March 28 X post.
“ETH was buried in an avalanche of its own tokens. Died by its own hand,” Carter said. He said this in response to Lekker Capital founder Quinn Thompson’s claim that Ether is “completely dead” as an investment.
