MarsBit recently compiled a collection of long and short views on Ethereum (ETH), focusing on a central question: can the growing value of the Ethereum network flow back into the price of its native token, ETH?
This debate reflects a long-standing controversy over value capture in the crypto market. While Ethereum serves as the foundational layer for DeFi, NFTs, and smart contracts, and its ecosystem thrives, the price of ETH does not always correlate positively with actual network usage. After the implementation of EIP-1559, part of transaction fees are burned, theoretically creating deflationary pressure on ETH. However, the rise of Layer 2 scaling solutions like Arbitrum and Optimism may also divert value capture from the mainnet.
Bulls argue that with Ethereum's full transition to Proof-of-Stake, staking rewards and the burn mechanism will enhance ETH's monetary properties. Bears, on the other hand, point out that application-layer tokens and Layer 2 native tokens might capture a larger share of ecosystem growth than ETH itself. This compilation brings together in-depth analyses from different market perspectives, offering investors a multi-dimensional view.