Ethereum: Analyst claims ‘junk coin’ ETH is ‘Bitcoin pretender’ despite ‘Etheridiots’

• Peter Brandt criticized Ethereum as a “junk coin” due to perceived flaws
• Most experts, however, are optimistic about Ethereum’s future 

The crypto-market recorded significant volatility in the first quarter of 2024, with many leading cryptocurrencies such as Ethereum [ETH] and Bitcoin [BTC] both rising and falling. Ethereum, in particular, has showed some promising signs beyond price movements though, especially in terms of revenue. 

At the time of writing, ETH was up by 1.71% over a 24-hour period, with the altcoin valued at $3,334.77.

Ethereum’s mixed signals

However, if we look at the monthly data, the altcoin has dipped by 11.94%, with its trading volume down by 5.18% too at a figure of $13.87 billion. Remarking on the month-long bearish movement and the long-term prospects of Ethereum, renowned trader Peter Brandt noted, 

“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.”

He further elaborated, 

“Its functionality is also junk – difficult to deal with L2s and outrageous gas fees. Of course it will always attract “investors””.

Here, it’s worth noting that other commentators are more positive about Ethereum. JP Morgan, for instance, cited Lido’s reduced stake in Ethereum as a factor. In fact, Nikolaos Panigirtzoglou believes this decline could save the altcoin from being classified as a security.

ETH’s positive outlook amidst criticism 

Brandt’s critique of the crypto stirred varied responses in the community. While some echoed his views, others went ahead to defend Ethereum. 

Notably, Adam Back, CEO of Blockstream, aligned with Brandt’s remarks and tweeted, 

“Don’t forget the > $1bi per quarterl hacks, “hacks” and rug-pulls on its seemingly unsecurable script, which is just getting worse over time, because complexity kills; and the eths in charge just continue adding complexity…”

Despite various criticisms, however, many expect ETH to do well, particularly after Bitcoin’s halving. Hashkey Capital’s Head of Research, Jupiter Zheng, shares this sentiment too, suggesting that ETF denial may not significantly affect prices. Moreover, he believes that the approval of a spot Ether ETF with staking could further boost prices. 

The derivatives market also highlighted a positive outlook, as reflected by ETH’s Funding Rate in the green zone. This is a sign of strong dominance of long-position traders who are willing to pay short-position traders – A bullish sign for Ethereum’s market.