Near the top of the 2017 bull market, when the total crypto market cap crossed $500 billion for the first time, Vitalik Buterin famously tweeted out asking if we had “earned it”. He then asked a bunch of different questions in the thread and honestly the answer to almost all of them at the time was “no”.
But yesterday, ETH hit its all time high again and I’d say that we have definitely earned it this time.
ETH set its all time of high of $1420 on January 13th, 2018 and back then I’d say that ETH was extremely overvalued for what it was. There was no DeFi, no eth2, the network was really only being used for ICOs and Cryptokitties was the hottest app at the time. Fast forward 3 years and well, I don’t think I need to explain just how much activity is happening on the Ethereum network today. You can even see from the tweet above that in 2017 the ETH price was way ahead of the revenue the network was generating (aka fees being paid) whereas today it is actually undervalued compared to the fees being paid.
For those of you who were around in 2017 you’d easily resonate with what I said above as it really does feel completely different this time. The hottest app on the network today is Uniswap - something that didn’t even exist in 2017 - and ICOs are now essentially non-existent. It truly is amazing just how far the ecosystem has come in 3 years in which 2 of those were a brutal bear market. Though, Ethereum’s strength has always been its ability to attract and retain top-tier builders and community members no matter the market conditions.
All time high is one of those special occasions that the entire community can rally around as its a strong Schelling point and in Bitcoin and Ethereum’s case, it is something that only happens once every few years. On top of this community excitement, a rising price in ETH is amazing for a variety of reasons as I outlined in this piece with the main reason being that it gives the ecosystem so much more money to play with. This money can be used to fund Gitcoin Grants rounds, fund eth1 and eth2 development, provide lots of liquidity to DeFi and so much more.
I don’t know where the ETH price is going to go from here or what the next all time high will be before we go into another bear market but I do believe that we’re just getting started. The Ethereum network is continuing to grow rapidly, eth2 development is chugging along nicely and new users are flooding in - there has never been a better time to be part of the Ethereum ecosystem.
Have a great day everyone,
Join the Daily Gwei Ecosystem
All information presented above is for educational purposes only and should not be taken as investment advice.