Ethereum (ETH) price at $20?
An investor recently addressed the issue, highlighting an interesting viewpoint for the asset reaching this milestone: the key to Ethereum’s success lies in its real-world adoption and the growth of activity on its platforms.
Ethereum-focused investor Ryan Berckmans argues that practical utility is the determining factor in ETH’s appreciation. According to him, high fees, although seen as an obstacle, can be interpreted as a sign of confidence in the cryptocurrency. Berckmans compared ETH to Bitcoin, which maintains its value even with the centralization of much of its use.
“For ETH, real-world growth is the answer. How do we get ETH to $20k? Fee value accumulation is obviously not necessary to drive the public trust needed for a high token price, otherwise BTC would have no value because 99,999% of BTC activity is centralized and does not accrue value to bitcoin. So while strong value accumulation is not necessary for a high token price, it can be sufficient?”
To reach the ambitious $20 target, Ethereum would need to focus on robust growth, with the expert suggesting that the network should prioritize expanding Layer 1 applications and improving integration with Layer 2 solutions.
“Could we get ETH to $20k without going back to high total fees? Perhaps we could imagine a scenario where we attracted $1 trillion worth of stablecoins to L1 and trust ETH moons, but total fees are still low for some reason. This kind of fictional scenario is highly unrealistic because most types of growth will tend to increase fee levels, directly or indirectly. If we attracted $1 trillion worth of stablecoins, fee levels would probably already be high. In fact, many of those $1 trillion worth of stablecoins would likely have joined the platform because of other types of growth that increased fee levels.”
At the time of publication, the price of Ethereum was quoted at US$1,801.37, up 0.5% in the last 24 hours.