Why the ETH Debate is Bullish For Crypto as an Asset Class

The gas fee debate will positively impact both Ethereum and other L1s

Hey DEFI TIMES community,

Have you been on crypto Twitter lately?

If yes, then you most likely heard about the Ethereum gas fee debate, which is going on. There is some serious FUD on Crypto Twitter right on, which is (in my opinion) not justified.

But let’s start by exploring what actually happened.

It all started with the gas fee debate around Ethereum. Yes, gas fees are high - and yes, gas fees are lower on other chains.

That has been the case for over 12 months now and it’s not likely to change anytime soon. But in the past few days, more and more people on Crypto Twitter have claimed to have “abandoned” Ethereum and moved on to other layer-one chains.

And then Zhu Su released this tweet.

Zhu claimed that he left the Ethereum community.

He then went on to say that the Ethereum community is too rich to realize that most people cannot afford the gas fees anymore.

Zhu’s tweet was just one example. There have been numerous more tweets, which I don’t want to go through today. But you get the general picture.

Obviously, the ETH community reacted quite harshly to this.

I don’t want to go too deep into what happened but rather talk about the long-term effects of this debate.

I believe that this debate is incredibly valuable for the whole crypto ecosystem (both Ethereum and other layer ones). 

So let’s see why!

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Why the ETH Debate is Bullish For Crypto as an Asset Class

The Ethereum advocates fought back, of course. They claimed that Zhu Su would just “pump his own bags.” And in some kind of way, they are right. 3 Arrow Capital has a large position in Avalanche. They have an incentive to dump ETH – and, on the other hand, pump AVAX.

But that’s not the only thing Ethereum advocated said. They also claimed that Zhu Su was completely incorrect when he said that Ethereum stopped caring about its community. In fact, the ETH community is actively building Layer-2 solutions and sidechains.

Who is Right?

I believe that the arguments from both sides are (in some way) legitimate.

  1. Yes, Ethereum’s gas fees are way too high. And yes, they don’t seem to go down any time soon.

  2. On the other hand, ETH devs are actively building high-quality solutions for the long term.

Why the ETH Gas Fee Debate Will Benefit All Parties Involved

Now, the question is: Who will be the winner of all of this?

In my opinion, (and as so often in crypto) all parties will profit immensely from this discussion. But why?

The Gas Fee Debate Is Good for ETH

Let’s start with the gas fee debate. Gas fees have been incredibly high for over one year now. This will be the case until Sharding ships, which is approximately 2-3 years away.

But high gas fees are the reason why Ethereum Devs have to keep working hard until Sharding is launched. And with the discussion on Crypto Twitter, the pressure got even more intense. However, the pressure on the Ethereum community will actually be beneficial to Ethereum’s development. The more people are shitting on ETH gas fees, the harder devs work to fight against it.

That means Zhu Su tweeting bad things about Ethereum is actually good for Ethereum as a whole.

Zhu Su Pumping AVAX Legitimizes Other Layer-Ones

3 Arrow Capital is a big trading company and Zhu Su has amassed a large following of people, who copy his trades. 

In fact, I think Zhu Su’s bullish tweets on AVAX have been one of the main reasons why AVAX increased so heavily in price during the last few weeks.

The more attention there is one Avalanche and other layer-one chains, the more legitimate they become. Even though Zhu Su is mainly shilling his own bags, I believe that his tweets have a massive positive impact on the long-term legitimacy of Avalanche.

Not only Avalanche but also most other layer-one chains. Attention is shifting from Ethereum to a broader ecosystem of blockchains and I think that’s very healthy for the whole crypto ecosystem.

The future is multi-chain, no doubt.

So, if Ethereum wins, other chains will win as well. If Avalanche gains in momentum, other chains will do too.

Crypto is not a zero-sum game.

While the gas fee debate will positively impact Ethereum’s development, it will also bring more momentum to Solana, Avalanche, Cosmos, etc.

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DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.

Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.