Ethereum’s potential to reach the $20,000 price point has sparked a heated debate among investors and analysts.
While Ethereum’s performance is often linked to its network activity and real-world usage, achieving this ambitious price level depends heavily on the adoption and utilization of its platform.
The Power of Real-World Usage
Ryan Berckmans, an Ethereum investor, believes that the foundation for ETH’s price reaching $20,000 lies in its practical use. He argues that high transaction fees—typically seen as a drawback—actually reflect the confidence and trust users place in the network. According to Berckmans, the more users are willing to pay for transactions, the more they believe in the value of the Ethereum network.
This, he believes, is similar to Bitcoin, where the centralized usage still allows it to hold its value, despite most of its transactions being centralized. For Ethereum to replicate Bitcoin’s success, it needs to focus on real-world growth and drive significant utility on its network.
The Role of High Fees
Berckmans highlights the importance of high fees in achieving Ethereum’s price growth. Even if the Ethereum network handles $1 trillion in stablecoin transactions, it wouldn’t be enough to drive the price to $20,000 without substantial fees supporting the value. He suggests that ETH must prioritize building a network with consistent growth to maintain investor confidence and eventually reach that coveted price point.
In summary, Ethereum’s future success, according to Berckmans, hinges on its real-world usage and high transaction fees, both of which will help ensure that the network’s value is consistently recognized and supported. Without this, Ethereum’s journey to $20,000 might be an uphill battle.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/could-ethereum-reach-20000/