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Gas doubled and then doubled again! Whale trader JOE007: Ethereum activity is only a "boom" brought by stablecoins.

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Gas doubled and then doubled again! Whale trader JOE007: Ethereum activity is only a "boom" brought by stablecoins.

Decentralized finance (DeFi) has not only attracted the attention of investors this year, but also continues to attract new capital inflows. According to data from DeFi Pulse, the total locked value in DeFi officially surpassed $3 billion on the 22nd, reaching $3.3 billion at the time of writing. However, the well-known whale trader JOE007 once again criticized this, describing DeFi as a Ponzi scheme and bluntly stating that Ethereum will be abandoned by the trend as transaction fees surge.

The mysterious trader JOE007, who once dominated the top spot on the Bitfinex trading leaderboard, later temporarily deactivated his Twitter account. Despite eventually returning due to nostalgia for the Twitter crypto community, this move led to his disconnection from the Bitfinex trading leaderboard.

Nevertheless, his actions still garner significant attention, and his well-known Twitter followers include:

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  • Chain News Editor-in-Chief: Liu Feng
  • Three Arrows Capital CEO: Su Zhu
  • S2F Price Model Inventor: PlanB
  • Coin Metrics Founder: Nic Carter
  • Blockstream CEO: Adam Back
  • The Block Research Director: Larry Cermak

Stablecoins Dominate On-Chain Activities

JOE007 pointed out on Twitter that the vibrant on-chain activities on the Ethereum network are largely driven by ERC20 stablecoins. Looking back to the end of May, the total daily transaction fees were around 1,700 ETH, but according to data from Etherscan on the 18th, the total daily transaction fees had doubled to 3,643 ETH, and by the 22nd, it had reached 5,190 ETH. JOE007 stated:

The majority of Ethereum activities are caused by stablecoins operating on the Ethereum network or stablecoins created by #DeFi Ponzi schemes. For Ether, apart from being used as transaction fees, it has no other use case. Therefore, when the fees increase significantly, the incentive to abandon Ethereum and seek other platforms also increases.

Dogecoin and Bitcoin Admirer

In fact, besides Bitcoin, JOE007 seems pessimistic about any other asset. He previously mocked Ethereum as a fully functional and sustainable fraud machine and criticized ChainLink during its rise in early July, calling it a junk coin driven by FOMO. However, like Tesla CEO Elon Musk, he has a soft spot for Dogecoin, stating on Twitter:

Dogecoin is very honest, with no fraud, empty promises, or pretentious behavior. It's purely a classic meme coin, and I genuinely respect Dogecoin from the bottom of my heart.

Despite the criticism, Ether officially broke through the four-month resistance at $250 yesterday, reaching $264 at press time, reclaiming the losses from the March drop and soon challenging the annual high of $289 set in February.

Ethereum Daily Chart (Source: tradingview)