Ethereum (ETH) is performing close to its lowest point against Bitcoin in nearly five years, with some investors labeling it as a "completely dead" investment. However, not all cryptocurrency traders share this view. Nic Carter, a partner at Castle Island Ventures, pointed out that the greedy Ethereum Layer-2 (L2) networks are siphoning value from the main network, and the community lacks opposition to excessive token creation, which has led to a decline in Ethereum's investment appeal. Meanwhile, Quinn Thompson, the founder of Lekker Capital, also stated that Ethereum as an investment has "completely died." The ETH/BTC ratio indicates that Ethereum's relative strength against Bitcoin is at its lowest level in nearly five years. Nevertheless, some traders remain optimistic about Ethereum, believing it could be the "best opportunity" in the market.

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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. “A $225 billion market cap network that is seeing declines in transaction activity, user growth and fees/revenues. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not,” Thompson said in a March 28 X post. The ETH/BTC ratio — which shows Ether’s relative strength compared to Bitcoin (BTC) — is sitting at 0.02260, its lowest level in nearly five years, according to TradingView data. At the time of publication, Ether is trading at $1,894, down 5.34% over the past seven days, according to CoinMarketCap data. Meanwhile, Cointelegraph Magazine reported in September 2024 that fee revenue for Ethereum had “collapsed” by 99% over the previous six months as “extractive L2s” absorbed all the users, transactions and fee revenue while contributing nothing to the base layer. Around the same time, Cinneamhain Ventures partner Adam Cochran said Based Rollups could solve the issue of Ethereum’s layer-2 networks pulling liquidity and revenue from the blockchain’s base layer. Cochran said Based Rollups could “directly impact the monetization of Ethereum by making a pretty fundamental change to incentive structures.” Related: Ethereum futures premium hits 1+ year low — Is it time to buy the ETH bottom? Despite optimism toward the end of last year about Ether reaching $10,000 in 2025 — especially after reaching $4,000 in December, the same month Bitcoin touched $100,000 for the first time — it has since seen a sharp decline alongside the broader crypto market downturn. Standard Chartered added to the bearish outlook via a March 17 client letter , which revised down their end of 2025 ETH price estimate from $10,000 to $4,000, a 60% reduction. However, several crypto traders, including pseudonymous traders Doctor Profit and Merlijn The Trader, are “insanely bullish” and argue that Ether could be the “best opportunity in the market.” Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder 

The investment attractiveness of Ethereum has declined, with Layer-2 networks being cited as the main reason.