Peter Brandt slams “Outrageous” Ethereum gas post-Dencun upgrade

Eminent financial specialist and professional marketer Peter Brandt has once again doubted the prospects of Ethereum (ETH), the well-known blockchain platform, the originator of smart contracts, and the foundation of the Decentralized Finance (DeFi) industry. According to Brandt, Ethereum, despite its key roles in developing blockchain technology and being the second largest cryptocurrency by market cap, has drawbacks, and he recently referred to it and its native token as “junk.”

Brandt’s latest comments have triggered a new discussion in the crypto community because Ethereum has existed since its release in 2015 and has already won people’s trust. An extensive range of applications have used Ethereum’s smart contracts, which helped pave the way for the large and flourishing DeFi sector. But Brandt does not abide with Ethereum’s value proposition at all. Nevertheless, he criticizes Ethereum’s functionality and ability to serve as a vehicle of value storage. He even dared endorse Bitcoin as the only superior competitor, not convinced about the overall usefulness of the technology.

During Brandt’s comment, Ethereum currency has become more valuable, at $3,328.06, with a market cap of almost $400 billion. However, Brandt appraises the “obvious wins” (what some might call that) and focuses his attention on the shortcomings he sees in Ethereum, especially at Layer 2 (L2) (high transaction fees).

But apart from that, Brandt’s review was published at a time when users of Ethereum had already seen a considerable reduction in gas fees for operations on the L2 network because of the recent Denchu Update. This development has been mentioned because it is supposed to bring about considerable savings with the argument, but Brandt somehow is avoiding these new developments.

Brandt’s point of view regarding Ethereum has remained unchanged for a while now. In the latter part of 2023, he had made a stance to drop his crypto short in a purported manner, which, he said, called for a price fall as low as $600. While he did not mention what he thinks about the current price of Ethereum in his previous speech, he looked certain that investors do not let others’ criticisms get to them and that there are other reasons investors are investing, perhaps for speculation or the platform’s technological innovation.

The broader implications of Brandt’s evaluation also impact regulatory aspects. The crypto community closely follows up on the SEC for any progressions related to spot Ethereum ETF approval. Such a development affects investor sentiment significantly. Nevertheless, whether Ethereum is considered a security by the SEC through an “investment contract” or not creates an obstacle for them to be granted the status of a commodity.

Brandt’s criticisms of Ethereum gave rise to the discussion, which included the platform’s importance within the crypto space, the strengths of its technology, and the prospects of its development. Since Ethereum is a project under development all the time through improvements directed at scalability and transaction fee problems, the community has continued discussing its future and the merits of its role both as a cryptocurrency and a technological platform.