TechFlow reports, on September 5, Ethereum Foundation member Justin Drake shared insights on ETH asset appreciation during an Ethereum Foundation AMA. Drake emphasized that ETH appreciation is crucial for Ethereum to become the settlement layer of the internet of value. He noted that monetary premium grows with asset scale, and is essential for supporting decentralized stablecoins, providing economic security, and attracting major economic participants.
Drake further explained that ETH value growth primarily stems from throughput and monetary premium. Regarding throughput, the key metric is total fees rather than per-transaction fees. He projected that in a successful scenario, Ethereum could process 10 million transactions per second; even with per-transaction fees below one cent, this would generate substantial revenue. For example, at $0.002 per transaction, daily revenue could reach $2 billion. On monetary premium, a critical metric is the proportion of ETH used as collateral, especially within DeFi.
