Ethereum: ETH explodes by 400%… on the testnet Goerli

Tweet from the founder of Uniswap who shares his dismay regarding GoETH.

WTF- For the past week, a debate has raged on Ethereum. Indeed, the developers of the LayerZero project have set up the possibility of buying Goerli-ETH for the eponymous testnet. A surprising situation, especially since the price of GoETH has exploded.


LayerZero makes GoETH pay

On February 21, bridge protocol teams LayerZero have dedicationTHE a surprising plan to say the least.

Thus, the latter were based on an observation: getting a reasonable amount of Goerli-ETH is almost impossible. Indeed, the distribution of GoETH, the native currency of the Goerli testnet, is concentrated in the hands of a handful of validators.

Usually testnet tokens can be acquired for free via faucet services. However, faced with the difficulty of obtaining GoETH, LayerZero came up with an unexpected solution.

So they introduced Testnet Bridge » a solution to migrate assets from Ethereum to the Goerli testnet. At the same time, they alsodeployed a pool on Uniswapallowing toexchange ETH for GoETH .

“You can transfer your ETH to Goerli mETH or your Goerli-ETH to Mainnet gETH directly through the UI. You can also transact directly through the Uniswap user interface. »

Thus, it is now possible to buy GoETH on Uniswapagainst ETH. These GoETH can then be sent over the testnet using LayerZero’s Testnet Bridge. Aren’t we walking on our heads?

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A solution far from unanimous

Quickly, this solution attracted the wrath of many developers. So, Hayden Adams the founder of Uniswap expressed his dismay over Twitter :

“If you buy eth goerli, why the hell are you doing it? You all know this is a deprecated and soon to be unsupported testnet, right? That said, it’s always fun to see weird things happen on Uniswap. »

Tweet from the founder of Uniswap who shares his dismay regarding GoETH.
Uniswap founder shares his dismay over GoETH.

Indeed, as indicated by the official site of Ethereum, the testnet Goerli will be suspended for the benefit of a new testnet called Holesovice. The latter should see the light of day in September 2023.

Moreover, the Ethereum Foundation encourage developers to migrate their applications on the Sepolia testnet pending Goerli’s suspension.

Goerli-ETH to the moon

Let’s resume. We have some Goerli-ETH on salewhile they are testnet tokens, an aberration by definition. We have a testnet that will be suspended next September.

So many elements that suggest that no one will pay money to obtain GoETH tokens. And yet, once again the crypto ecosystem is behaving against the grain.

So while it was initially launched at $0.10 per GoETH, the token is currently trading three times above the initial price, at $0.30. On February 27, the token even reached a ATH at $0.42. Still, the token is useless on the mainnet.

Evolution curve of the GoETH price.
Evolution of the price of GoETH.

For its part, the Ethereum network is preparing for the Shapella update, which will open the possibility of withdrawing ETH deposited in staking.This will be deployed today on the Sepolia testnetwhich will make it possible to plan the deployment on the mainnet next March.

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