The potential of Ethereum has always been deeper than the code and decentralized dapps. It was the hope of a new wave of fintech, of democratizing finance, of returning the power to the people. I feel a change in the wind. Most of us are left treading water as a few continue to surf on this new fortune.
Are Ethereum's Roots Rotting Away?
We’re already watching whales including SharpLink Gaming and whale 0x1fc7 minting millions in ETH. That's their prerogative, of course. When I see these massive accumulations – 1,989 ETH here, 1,888 ETH there – I can't help but wonder who isn't benefiting. Is this the future we envisioned? A digital gilded age in which the winners win bigger, sooner?
It would be like watching a baker create an enormous cake, and only allowing a few dozen people to have a bite. Yes, the cake is real, and it’s even more fabulous in person. What about everyone else who's hungry? What about all of those who want to eat a pie but can hardly afford a piece, much less bake their own?
It’s not only the price of ETH. It's about access. High gas fees on Ethereum make it hard for smaller-scale users to participate, most acutely impacting those from developing nations. How does a person in Nigeria, where many are living on less than $1 a day, participate in the DeFi revolution? High transaction fees eat into their investment with little to no return. We preach financial inclusion and access to everyone TIME, but the reality on the ground is completely opposite.
Gas Fees: A Tax on the Poor?
Think of it like this: imagine a tax system where the percentage you pay increases dramatically the smaller your income. It sounds absurd, right? That’s essentially what high gas fees accomplish right now, within the Ethereum ecosystem. They disproportionately impact those who can least afford them.
The MVRV Z-score going down to negative values? The NVT Ratio skyrocketing? These are all signs that things are out of alignment. The network valuation is outpacing its utility. In other words, it’s a high-end luxury car that’s sitting in rush hour traffic – all of that dream potential, but no outlet to escape through.
I read about the boom in new Ethereum addresses growing so fast they’re crashing. Speculative, bot-driven activity. It feels as if the network is luring in short-sighted opportunists, rather than long-term builders and actual network users.
Blockchain's Potential: A Missed Opportunity?
We believed blockchain technology could be a powerful, inclusive tool that amplified the power of social good. Imagine if you could make supply chains extremely transparent. Imagine delivering relief to everyone who needs it directly and leveraging the power of disenfranchised communities. If the benefits are just lining the pockets of a few, then we’re really missing a golden opportunity.
I return to Amahle, the teen entrepreneur from South Africa, who I met at a blockchain conference. Her most genius move was deciding to build on Ethereum. It would give local farmers access to consumers directly, cut out the middlemen and their profits and it’d be good for those farmers. The gas fees made it impossible. Unfortunately, her dream, just like so many others, ran out of gas before it really even got rolling.
It’s easy to get swept away in the excitement surrounding crypto. I get it — so many folks are enamored with price charts and everything under the sun in the latest DeFi protocols. As you think futuristically, don’t forget the human side. Ethereum is more than technology, it’s a people story. It’s about creating a more sustainable, inclusive, equitable and just world.
We need to ask ourselves: are we building a system that benefits everyone, or are we creating a new form of digital feudalism? Are we actually reducing the amount of power at the center, or just transferring it from one group of central elites to another?
The answer, I regret to report, is looking more obvious by the day. It’s a wake-up call we can no longer afford to ignore. The economic whales are piling up — but at what price? Are we trading away the long-term soul of Ethereum for very short-term financial gains? It's time to demand better. We can’t make it time to build that tide rising all boats, just the yachts.
