PlanB Slams Ethereum (ETH) as a “Centralized” and “Pre-Mined” Coin

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.

Bitcoin analyst PlanB, known for his Stock-to-Flow (S2F) model, has launched a scathing critique of Ethereum (ETH), branding it a "centralized" and "pre-mined" coin. His comments come as Ethereum's price and market dominance have seen significant declines since the start of 2025.

PlanB's Key Criticisms of Ethereum

PlanB's criticisms 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. Buterin's comments came in response to an article by The Block asserting that Bitcoin's price tends to decrease as its hash rate increases, while the price of coins used in DeFi protocols follows the total value locked (TVL) in these protocols.

PlanB used this opportunity to highlight that the ETH/BTC trading pair had reached a nine-year low by August, further fueling his claims that Ethereum is flawed.

"Coins used in DeFi protocols should follow TVL of these protocols (e.g., LINK, UNI, AAVE). But BTC hash rate is going up, and at the same time, we see people massively sell their LINK, UNI, AAVE coins. Something is fundamentally flawed in this setup. Maybe that's why ETH/BTC is at a 9-year low," PlanB stated.

Buterin had also mentioned that coins subject to inflation tend to decrease in price, while coins used as money, like Bitcoin, maintain their value. Continuing his tirade, PlanB asserted that this statement was false, adding that "coins used as money are not subject to inflation." He further stated that "Bitcoin is used more as inflation hedges (anti-fiat) than as money (P2P payments)."

PlanB went on to dismiss 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.

"They premined 60% of the total supply and now do PoS, which gives even more power to the large ETH holders to control the chain. Unbelievable that people fall for this scam again and again."

PlanB's sharp criticism of Ethereum 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 highlighted that in 2024, Ethereum processed more stablecoin transactions than Visa, with stablecoins on the Ethereum network clocking in at over $14 trillion in transactions. This figure compares to $13 trillion in payments processed by Visa. Additionally, Ethereum's network hosts more than 50% of the total stablecoin supply, further underscoring its relevance in the global financial ecosystem.

"Burning through $14T in stablecoins on Ethereum vs. $13T in payments on Visa in 2024. Also, >50% of the total stablecoin supply is on Ethereum. Amazing times! #crypto #blockchain #web3," said Marques.

Furthermore, 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: Progress Amid Criticism

Defenders of Ethereum 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 pointed out 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