Sharp criticism from within Ethereum developers claims that Ethereum has fallen 65% against Bitcoin ($BTC) Because the merger is due to a specific failure of execution at the Ethereum Foundation, rather than a broader market cycle or correction issue.
Reid, a participant in the ICO era who still builds on Ethereum ($ETH), announced an indictment and cited missing names, dates, and product calls as a performance liability accumulating poor performance.
Named Drop 65%
Lead central data points align with public market data. of $ETH/$BTC This ratio peaked at nearly 0.085 around the time of the September 2022 merger.
By late May, it had fallen to around 0.028, capturing Ether’s underperformance relative to Bitcoin. Ether is currently trading below $2,000 and has fallen 21% over the past year.
Reid rejects claims made by Bankless co-founder David Hoffman, who framed Ether’s “natural cap” as a noble cap. He argues that the ceiling is lower than bulls expected because of the name and date rather than correction theory.
Reid, whose companies include Figure and Securitization, cover credit and real-world assets, reveals he remains long ether.
ESG marketing and the missing staking interface
Reed argues that Merge’s 99.95% energy reduction message answered questions capital allocators never asked.
Institutions wanted yield, developers wanted finality, and users wanted cheaper deals. Solana sold raw speed during the same period.
Proof of Stake has been on the roadmap since 2015 and took seven years to ship. Solana launched its mainnet beta in March 2020, shipping wallets, decentralized exchanges, and money markets while Ethereum was discussing specifications.
Vitalik Buterin’s 2024-2025 writing has moved from Casper specifications to pluralism and network states.
Reid reads the tone as an established Ethereum cultural stance rather than an aggressive competitive stance.
The deciding factor, Read says, was that three years after the merger, there were no first-party staking apps.
The official path requires the validator to run at least 32. $ETH. Most users go through Lido, which holds about 24% of their staking. $ETH Despite repeated warnings from developers about centralization.
“‘We’re not picking winners’ is what organizations say when they don’t want to compete,” Reed said.
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Rollup as a managed decline
A rollup-centric roadmap has exhausted base layers. EIP-4844 went live in March 2024 and pushed BLOB rates near 1-way through 2024 and most of 2025.
Ethereum’s quarterly transaction fee revenue has fallen by about 95% from its peak of $4.3 billion in the fourth quarter of 2021.
Arbitrum touts operating margins of 90% to 98% on L2. Base captured nearly 70% of rollup profits by mid-2025.
All major L2s issued their own tokens, fragmenting the flow of capital within the ecosystem.
Reid contrasts this with Solana’s unified L1. Solana shows fees that accrue directly to the native token.
The remaining question is whether the pace of the foundation’s offerings will change. of $ETH/$BTC The path of the ratio in the remaining cycles reflects the answer.
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