Ethereum scaling plans and network apps should start supporting the network’s native ether (ETH) to further bump the asset’s value, co-founder Vitalik Buterin wrote in a post Friday.
“We should adopt a multi-pronged strategy to cover all major possible sources of ETH as a three-point asset,” Buterin said as part of a longer post on Layer 2 scale, security and interoperability. “Broad agreement cements ETH as the primary asset of the larger (L1+L2) Ethereum economy, supporting applications that use ETH as primary collateral.”
Buterin called for implementing incentives for layer 2 networks to use burn fees, permanently distribute them or redirect the proceeds to public goods in the Ethereum ecosystem, allocating a portion of their fees to ETH.
His comments come amid growing criticism of the Ethereum Foundation, the nonprofit organization that helps support ethereum with grants, because the asset is losing market capitalization and mindset to competitors.
The widely watched ether-to-fiber ratio dropped to the 2021 level. Bitcoin hit a record above $109,000 early Monday and has returned 160% of investors over the past year. Meanwhile, Ether gained only 40% during the period and is hovering at 30% of its 2021 peak, as a Coindesk Analysis show.
Another call is to increase Ethereum’s spot count while setting a minimum price for spots, treating it as “another possible revenue generator.”
“If you take the average spot fee over the past 30 days and assume it stays the same (due to induced demand) while the spot count increases to 128, Ethereum will burn 713,000 ETH per year.” The demand curve is “not guaranteed,” So it is not an isolated strategy to bump the value of ETH.
BLOBs are just like regular transactions, with additional transaction data attached. However, unlike traditional transactions, transactions carrying blobs will not occupy mainnet space permanently and can only be used for 18 days.
Since November, the daily count of blobs has averaged a record high of 21,000, with just two tier 2s (Coinbase’s Base and World Chain) accounting for 55% of daily activity. The continued demand for Layer 2 could quickly exhaust available capacity, as a Coindesk Analysis noted earlier this week.
