Table of Contents:

· Developers criticize high development costs and low innovation of Ethereum

· Believers believe that Ethereum will eventually achieve value return

On the same day when the prices of related currencies in the Bitcoin ecosystem such as $ORDI continued to break new highs, there were also some waves in the Ethereum community.

On December 5th, Ryan Sean Adams, the founder of Bankless (@RyanSAdams), published a long article on social media, stating that "it's ridiculous to say that ETH's price is as high as $2200... ETH has not yet entered a bull market." At the same time, he pointed out that the fundamentals of Ethereum are strong, and the current Ethereum has not yet fully realized its true value.

Later, like igniting long-accumulated emotions, many community participants and blockchain developers followed suit, including Uniswap founder Hayden Adams, Real Vision founder Raoul Pal, EthHub co-founder sassal.eth, Iron Forge Cloud CEO Italo Casas, and many members including Chen Jian Jason from the Institute of Everything, starting a big debate on topics such as the value of Ethereum and market sentiment.

At present, in the blooming of the Bitcoin ecosystem, the question of why Ethereum has not yet fully exerted its true power has also been repeatedly pondered by many "onlookers" of the Ethereum ecosystem.

Developers complain about high development costs and low innovation in Ethereum

BlockBeats observed that in this debate, two opinions were particularly prominent among developers who are not optimistic about Ethereum: the high development cost of Ethereum and its further hindrance to innovation.

Iron Forge Cloud's CEO Italo Casas (@italoacasas) said: "As the costs of Solana (SOL) and Ethereum (ETH) increase, developers need to spend more money to deploy and execute transactions. Don't you think this will affect innovation?"

Community developer McGavin (@NFT_Shooter) pointed out: "Ask retail users and they think ETH is terrible because everything costs $20. ETH should be a computer, people have lost focus and are trying to turn it into gold."

Community developer Jonnie King (@JonnieKing) believes that Ethereum has three fatal flaws: significant flaws in its business model and technology, heavy reliance on ETH price increases for L2, and the worst staking mechanism among all chains: "I do believe that Ethereum will improve in the next few years, but in its current state, it has serious flaws that competitors are solving at the base layer. This is why the market treats it as such."

The Chen Jian Jason from the Institute of Everything Research (@jason_chen998) said: "Many people say that Ethereum lacks innovation, but this is not a problem with Ethereum, but with the entire Web3."

Some users have pointed out that only "rising prices can convince people of its value", implying that in order for Ethereum to achieve value recovery, the price of ETH must rise higher.

Founder believes Ethereum will eventually achieve value regression

At the same time, including Uniswap founder hayden adams (@haydenzadams), former Goldman Sachs executive, macro research institution Real Vision founder Raoul Pal (@RaoulGMI), and EthHub co-founder sassal.eth (@sassal0x) all believe that Ethereum will eventually achieve value regression.

Ryan himself explains the reasons from multiple perspectives. He believes that the fundamental strength of Ethereum lies in the fact that it currently has an annualized profit of $2.7 billion, which is the only profitable chain. Secondly, Ethereum "now has the entire blockchain as net new buyers (from L2) for this cycle's block space." Finally, Ethereum is deflationary in this cycle - in the previous cycle, it had an annual inflation rate of 3-4%, but in this cycle it will burn around 0.5% annually.

Meanwhile, Ryan believes that when Ethereum has fundamentals, everyone here will be making "assumed" transactions during this cycle, while Ethereum further consolidates as a currency tool - a digital gold: "You can evaluate its value at will - if it has a currency amplifier like gold, its value is already $22,000."

Ryan's other views include that Ethereum bond holders now earn 5.3% annually, Ethereum is likely to get a spot ETF, and Ethereum is now fully POS, able to produce block space without consuming energy - "For traditional ESG investors, Ethereum ETF will be the only project checked in this cycle."

He said that ETH has not yet entered a bull market, and believes that the current market is still in a state of "irrationality".

EthHub co-founder sassal.eth (@sassal0x) believes that ETH will soar to over $10,000, leaving hesitant investors in a dilemma between fiat currency and junk coins: "We still need to clarify the value proposition of ETH."

In addition, he also stated that Ethereum's roadmap centered around L2/rollup is not perfect, but if the Ethereum ecosystem successfully achieves the grand vision of this roadmap, users will enjoy cheap and fast transactions on L2 while being protected by Ethereum L1: "This will be a magnificent sight."

Uniswap founder Hayden Adams (@haydenzadams) believes that the value of ETH comes from developers building cool and useful things on top of it. It has a huge first-mover advantage and is therefore very valuable. He also cites Uniswap as an example, stating that "Uniswap is a cool thing that people like to use and is the biggest value driver for Ethereum so far (about 25% of block space + about 75% of MEV)."

Former Goldman Sachs executive and founder of macro research firm Real Vision, Raoul Pal (@RaoulGMI), also wrote that "remember, at some point in this bull market, when ETH's ETF is listed and both retail and institutional investors are afraid of missing out, ETH will burn a record supply and a record amount of ETH will be locked up for staking."

This epic supply and demand shock is brewing.

Case4Bitcoin co-founder Dan McArdle (@robustus) pointed out that if ETH enthusiasts want to keep things simple, they should focus on "returns," especially for potential TradFi interests: "Once institutions' risk appetite for cryptocurrencies rebounds, ETH will be a major beneficiary because institutions like 'returns'."

This Ethereum debate had some accidental factors, but the community's lack of attractiveness and upward momentum in the good market situation was already complained about. These complaints are directed towards Ethereum technology and ETH prices. Compared to Bitcoin and BTC, Ethereum and ETH need to submit more convincing "papers" to make the community believe that waiting is worth it.

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