Bitcoin analyst PlanB, known for his Stock-to-Flow (S2F) model, has introduced a scathing critique of Ethereum (ETH), which he calls a “centralized” and “pre-mined” coin. His comments come as Ethereum’s price and market dominance have significantly decreased since the start of 2025.

PlanB’s Key Criticisms of Ethereum

PlanB’s criticisms are focused on the core mechanisms of Ethereum, particularly its transition from Proof of Work (PoW) to Proof of Stake (PoS) and the network’s tokenomics. In a recent post, PlanB referenced a 2022 statement by Ethereum co-founder Vitalik Buterin, where Buterin criticized the Stock-to-Flow model. PlanB seized the opportunity to point out that Ethereum’s ETH/BTC trading pair had reached a nine-year low, further fueling his claims that Ethereum is flawed.

PlanB dismissed Ethereum as a “shitcoin,” accusing it of being centralized due to its pre-mined supply and its PoS mechanism. He argued that PoS, which replaced the energy-intensive PoW, has further centralized Ethereum by giving large holders more control over transaction validation. This, he claims, undermines Ethereum’s decentralization—one of its core selling points.

The Pre-Mine Controversy

One of PlanB’s major concerns with Ethereum is the pre-mining of ETH. Early in Ethereum’s development, over 72 million ETH, roughly 60% of the total supply, were pre-mined. This early allocation gave developers and early investors a significant share of the network, potentially centralizing control in the hands of a few large players. PlanB believes this “premine” is a critical red flag, especially in the context of PoS, where large token holders can have an outsized influence on the network.

While PlanB’s critique gained traction among critics of Ethereum, it coincides with Ethereum’s dominance hitting a five-year low and ETH’s price dropping by nearly 60% since late 2024.

Ethereum’s Growing Real-World Use

Despite the criticisms, Ethereum continues to play a significant role in real-world applications. Analyst Danny Marques pointed out that in 2024, Ethereum processed more stablecoin transactions than Visa, with stablecoins on the Ethereum network surpassing $14 trillion in transactions—outpacing Visa’s $13 trillion in payments. Ethereum’s network also hosts more than 50% of the total stablecoin supply, further underscoring its relevance in the global financial ecosystem.

Moreover, Ethereum has become the dominant network for real-world asset (RWA) tokenization, holding over 56% of the total RWA value. This growing integration with traditional finance continues to strengthen Ethereum’s position in the blockchain space, despite the ongoing criticism.

Ethereum’s Progress Amid Criticism

Ethereum defenders argue that the network is becoming less centralized over time, with some even suggesting that Bitcoin, in its current state, could become more centralized due to increasing institutional involvement. Investor AllThingsEVM.eth noted that Bitcoin may face centralization pressures as nation-states and large institutions amass significant amounts of BTC. This situation could potentially undermine Bitcoin’s decentralized nature, especially as mining rewards decrease.

On the Ethereum side, co-founder Vitalik Buterin recently proposed a significant upgrade to the Ethereum Virtual Machine (EVM) with the introduction of RISC-V. This upgrade aims to improve the performance and scalability of Ethereum’s smart contracts, enhancing the network’s capabilities while maintaining backward compatibility.

Conclusion

PlanB’s sharp criticism of Ethereum highlights the ongoing debate within the cryptocurrency community regarding the network’s decentralization and the impact of its Proof of Stake mechanism. While Ethereum’s pre-mined supply and PoS model continue to raise concerns, the network’s growing adoption for stablecoin transactions and its leadership in RWA tokenization suggest that Ethereum remains an essential part of the broader blockchain landscape. As the network evolves with new upgrades, it will likely continue to be a focal point of both praise and criticism in the crypto space.