ETH rebounds to $2200, how do cryptocurrency practitioners view the future market trend?

ETH Bounces Back to $2200 Cryptocurrency Experts Predict the Future Market Trend

Author: 0xAyA, Odaily Planet Daily

Is ETH at $2200 expensive? At least Bankless founder Ryan Sean Adams doesn’t think so. On December 5th, Ryan published a long article on X platform, sarcastically counterattacking those who FUD ETH and pointing out that “ETH has not yet entered a bull market, and the market’s irrational emotions go far beyond this.”

In addition, Ryan also explained the strong fundamentals of Ethereum from multiple perspectives, such as high P/E ratio, deflationary nature, POS energy efficiency that makes it attractive to ESG investors, and even claiming that ETH has become the so-called “digital gold.”

This lengthy article instantly ignited the emotions of the community, with developers, VCs, researchers, and other roles taking turns to engage in a big discussion on this topic. While both the BTC and ETH ecosystems are thriving in the bull market, the ETH ecosystem, except for eth based on inscription, seems to be lukewarm. So how do the audience view Ryan’s article?

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Developers: Cost issues, mixed opinions

Leading the comments is a question from Iron ForgeCloud CEO Italo Casas: “As the only profitable chain, Ethereum currently has an annual profit of $2.7 billion, with a P/E ratio of 98, slightly higher than Amazon’s 75 and lower than Zoom’s 153. But what does this have to do with me as a developer?”

Ryan questioned Italo why he chose to develop on an expensive Layer 1, and then the two engaged in a fierce debate on whether token costs affect innovation.

Ryan believes that developers can develop on various Layer 2 solutions and states that “the price of ETH will not change the price of Ethereum block space,” while Italo retorted, “You can ask any developer whether they prefer ETH/SOL priced at $0 or ETH/SOL priced at $1000.”

Former Solana core developer @zen_llama gave his own interpretation of Ryan’s argument: “The code on Ethereum (or more precisely, the functionality supported by the code) makes its block space valuable. If the deployment cost of the code is higher, then the deployed code will be reduced, thereby reducing the value of the block space and increasing the gap between price and intrinsic value. I personally disagree with Rollups as a scaling solution, but they make a lot of sense as value capture solutions for ETH assets. This brings revenue to different networks, which is why I think Rollups are dangerous for ETH.”

Meanwhile, he also pointed out: “If it costs $20 to send $5, then is it still attractive to build payment applications on Ethereum?”

Former Coinbase engineer and Helius CEO @0x Mert_ mocked: “Hey Ryan, Solana is 400-30,000 times cheaper than Ethereum and its L2s. I suggest you don’t publish tweets that have fundamental misunderstandings like this again.”

Supporters: Still optimistic, looking forward to the future

The answer from Uniswap founder Hayden Adams can represent the voice of most Ryan supporters. He said that the value of ETH comes from developers building cool and useful things on top of it. It has a huge advantage, so it is very valuable. He also used Uniswap as an example, saying that “Uniswap is a cool thing people like to use, and it is the largest value driver for Ethereum so far (about 25% block space + about 75% MEV).”

The Daily Gwei founder @sassa l0x is very optimistic, saying, “ETH will soar to over $10,000, making hesitant investors fall into the quagmire of fiat currency and shitcoins. In my opinion, we still need to clarify where the value of ETH is supported, this is crazy, but thank you for doing it!”

NFT developer @MrFwashere said, “ETH is too expensive and it’s like no one drives in New York because the traffic is too busy.”

User @YieldBouncer has even opened a bottle of champagne: “The last time I remember Ryan writing something similar, ETH was $400, and then the bull market came. Moonshot!”

BTC Supporters Strike Back

Of course, Ryan’s comments section is not without opposition from die-hard Bitcoin supporters. User @phyrooo says, “Ethereum has now fully implemented POS and no longer burns energy to generate block space… Well, it seems you don’t understand that burning energy is Bitcoin’s defense mechanism.”

User @danieleripoll countered Ryan’s viewpoint in a different way: “Last time BTC was $40,000, ETH was $2,700. Now ETH is $2,200, and BTC is $41,500.”

Summary

In response to Ryan’s viewpoint, spectators have expressed their own opinions, creating a heated atmosphere of discussion. Some people support Ryan’s perspective, believing that Ethereum’s fundamentals are strong and its price is not expensive. They point out Ethereum’s leading position in DeFi, NFTs, and blockchain applications, as well as its growing developer community and ecosystem.

However, some people remain skeptical of Ryan’s viewpoint. They express concerns about Ethereum’s scalability and transaction congestion issues, while also noting that price increases may affect developers’ innovation drive.

Regardless of the perspectives, Ryan’s milk post has slightly shifted the focus of attention and discussion back to Ethereum. Will Ethereum continue to lead innovation in this bull market and overcome the various challenges it faces, as it has done in the past? Let’s wait and see.

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