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Ethereum price drops nearly 60% as PlanB questions network control

Ethereum price drops nearly 60% as PlanB questions network control

GrafaGrafa2025/04/22 03:10
By:Mahathir Bayena

PlanB, the creator of the Bitcoin (CRYPTO:BTC) Stock-to-Flow (S2F) model, has renewed criticism of Ethereum (CRYPTO:ETH), focusing on its structure and recent market decline.

According to PlanB, Ethereum’s price and dominance have dropped significantly since the start of the year, with ETH falling nearly 60 percent and its dominance reaching a five-year low.

“Ethereum is really not looking good now,” stated PlanB, referencing a 2022 post by Ethereum co-founder Vitalik Buterin, who had previously criticised the S2F model.

He described Ethereum as “centralised and premined,” citing its shift from Proof of Work to Proof of Stake (PoS), flexible supply schedule, and the initial pre-mining of over 72 million ETH, which represents about 60 percent of the circulating supply.

PlanB argued that these features give a small group excessive control, especially under PoS, where large holders have more influence over transaction validation.

“Premine is really a big red flag but I guess some people just don’t care,” PlanB said.

He also criticised the technical requirements for running an Ethereum node, noting that a full node can require more than one terabyte of storage, making it less accessible for regular users and impacting decentralisation.

PlanB claimed that Bitcoin full nodes require less than 700 gigabytes, which he believes supports greater network participation and decentralisation.

Other figures in the industry, such as Meltem Demirors of Crucible Capital, have echoed concerns about Ethereum’s transition to PoS, calling it a “trillion-dollar mistake” that may have diluted the network’s core values and innovation.

Despite these criticisms, some experts argue that Ethereum and Bitcoin serve different purposes, with Ethereum offering a more complex platform for global computation.

At the time of reporting, the Ethereum (ETH) price was $1,584.06.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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