On Feb. 25, the price of testnet ether on the Goerli testnet spiked to $1.60 as traders speculated on a token that is supposed to be worthless.
Cross-Chain Platform LayerZero Enables Trading and Swapping of Testnet Ether on Goerli Testnet
The sudden surge in price came after cross-chain platform LayerZero created a way for Goerli’s testnet ether to be traded and swapped between the Ethereum mainnet and the Goerli testnet.
This move made it easier for developers to buy testnet ether without relying on traditional methods such as faucets or asking the testnet’s developers for coins. However, critics warned that monetizing the native currency of a testnet could render it less suitable for its primary purpose, which is to support pre-production testing.
Polygon Chief Information Security Officer Mudit Gupta expressed his concern on Twitter and said, “This is the start of the end of the Goerli testnet. It served us well. Testnet ether is supposed to be free but is being marked up by speculators.”
Testnet Ether Reaches Peak of $1.60 Before Trading Downward, Retains Value of $0.37
The token was trading around $0.15 at the end of last week but rose to $1.60 on Saturday. Since then, the token has traded downward but still has a value of about $0.37.
The distribution of testnet ether on Goerli is currently in the hands of a few validators. These developers could significantly impact the market if they were to sell a large number of tokens at once, which also adds an element of risk.
Ethereum Developers Propose New Testnet to Address Challenges With Testnet Ether Distribution
To address this issue, Ethereum developers have proposed a solution that involves building a new testnet called Holli. This new testnet aims to make it easier for developers to acquire its testnet ether, thereby reducing the need for a secondary market where it must be purchased.
In conclusion, the recent surge in the price of testnet ether on the Goerli testnet has raised concerns among critics who believe that monetizing a currency designed to have no value could undermine its primary purpose. While the market remains volatile and testnet ether retains some value, developers are exploring alternative solutions, such as the proposed Holli testnet, to address this issue.
