ETH token price on testnet skyrocketed to 1.6 USD because of speculation

After being built by LayerZero to link with the Ethereum mainnet, the price of ETH tokens on the Goerli testnet skyrocketed because of speculation.

ETH token price on testnet skyrocketed to 1.6 USD because of speculation

As reported by Kyptos, the LayerZero cross-chain project last week launched the Testnet Bridge, a bridge linking the Goerli testnet and the Ethereum mainnet, and released a token representing ETH on the testnet. Allow swap with real ETH.

The reason given by LayerZero for such unprecedented action is that ETH on the Goerli testnet is difficult to earn, hindering the process of testing new solutions by developers. This unit hopes that through having a swap pool, developers can spend money to buy tokens on testnet, eliminating the inadequacy of having to wait to receive money via faucet.

However, a section of the Ethereum community criticized LayerZero for “financializing” Goerli, arguing that ETH on the testnet should be kept free and concerned that users would now have a financial incentive to continue “collecting”. row” of testnet tokens, exacerbating the problem of token shortages.

As feared, some investors have speculated on the Goerli testnet token, pushing the price of gETH to $1.6 over the weekend – 16 times the initial swap price set by LayerZero. In the hours that followed, the price of gETH fell back to its former level of around $0.3-$0.4.

Goerli ETH price movement since LayerZero launched its Token Bridge solution. Source: Dexscreener

Polygon Chief Security Officer Mudit Gupta expressed his disappointment:

“This is the beginning of Goerli’s end. It has served us well.”

Mr. Gupta confirmed that the price increase was due to speculation, but the need to buy for testing on Goerli is currently absent. The Polygon CISO also revealed that so far, the faucet he runs has allocated 6 million ETH on Goerli for free, while processing more than 100 billion RPC requests. However, because of Goerli’s current situation, the developer has stopped both push operations.

Uniswap founder Hayden Adams, which was coordinated by LayerZero to open the ETH testnet swap pool, also expressed displeasure with the speculative action. However, he seems to have no problem as long as users continue to swap tokens on Uniswap, helping the DEX to collect more transaction fees.

However, the Ethereum developers have also heard from LayerZero about the difficulty of accessing the ETH testnet, so are discussing the construction of a new testnet called Holii to ensure the distribution of ETH testnet takes place. just be fair.

Synthetic Kyptos

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