Benzinga - Ethereum (CRYPTO: ETH) co-founder Vitalik Buterin has pointed out that important parts of cryptocurrency technology are not getting enough investments compared to popular meme currencies like “dogcoins.”
What Happened: As Shiba Inu (CRYPTO: SHIB), Dogecoin (CRYPTO: DOGE), FLOKI (CRYPTO: FLOKI) and other meme coins rally, Buterin on Saturday responded to an X user Roko about the crypto infrastructure’s deficiencies.
I feel like 2 years ago I completely agreed, and my high-level argument was something like "infrastructure is public goods, the incentive to fund public goods is N times smaller than optimal (that's basic econ 101), so it's practically impossible for there to be too much…— vitalik.eth (@VitalikButerin) March 2, 2024
Buterin said that some areas within the crypto infrastructure are receiving excessive investment—perhaps more than is needed or useful—while other areas that could be more beneficial to the ecosystem as a whole are neglected or not getting enough support.
“The problem though is that ‘infrastructure’ is a diverse category, and some infrastructure is public goods while other infrastructure is realistically a zero-sum network effect grabbing game," he said.
“Today, it feels like some categories of infrastructure are way over-invested, and others are still very under-loved."
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: Buterin refers to his past viewpoint where he saw crypto infrastructure as a public good—a resource that is available for everyone to use but is not directly profitable to maintain.
“I felt completely the same two years ago, and my main argument was something like ‘infrastructure is a public good, the incentive to finance public goods is N times less than optimal (this is basic economics 101), therefore having a lot of infrastructure is practically impossible'," he tweeted.
This statement comes as Dogecoin rallies after surpassing the $0.1 level.
DOGE's market capitalization has surpassed the $20 billion mark, and at the time of writing, DOGE is ranked 9th in market position. DOGE's 24-hour trading volume also increased by 13.5%, exceeding $3.9 billion.
Price Action: At the time of writing, DOGE was trading at $0.15, up 11.45% in the last 24 hours, according to Benzinga Pro.
Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?
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