A supposedly worthless testnet coin on the leading altcoin Ethereum’s network surged 160%, surprising everyone. Here are the details…
Leading altcoin Ethereum network’s testnet coin rises
Ethereum’s Goerli testnet is a client-to-client network that uses proof-of-authority and is often used to run simulations prior to mainnet launch. The core is separate from the Ethereum ledger and therefore traders can transmit tokens from other chains to Goerli thanks to its cross-chain functionality. However, the testnet ETH on Goerli has experienced massive price volatility recently, despite having zero real-world commercial use.
Trading was first conceptualized by LayerZero, a cross-chain platform, enabling ETH trading of the Ethereum mainnet and the Goerli testnet. The main motivation behind this was to design tools through which developers could obtain ETH for use on the testnet in a more user-friendly way. On the other hand, those opposed to it have warned that monetizing a testnet in local currency aimed at facilitating pre-production testing would make the testnet less suitable for the task it was originally created to accomplish.
Mudit Gupta, Chief Information Security Officer at Polygon, took to Twitter to express his displeasure that the coin, which was intended to be free, was instead traded at a certain price point. “This is the beginning of the end of the Goerli testnet,” Gupta said. It has served us well.” he added. According to DexScreener, testnet ETH, symbolized as GETH (Goerli’s G), is trading around $0.46 at the time of writing. Still, it is important to note that the altcoin initially started trading at $0.15 and quickly climbed above $1. On Saturday, the coin reached $1.60.
This is the start of the end of Goerli testnet. It served us well.
My faucet distributed 6 million or so Goerli eth for free. Worth around 4 million USD at current prices 🙃.
My RPC node served over 100 billion requests.
They are both non functional now. I'll miss Goerli.
— Mudit Gupta (@Mudit__Gupta) February 26, 2023
Work continues for the Goerli network
The number of developers actively contributing to Goerli has increased significantly and therefore, it is predicted that monies earned from “faucet” will be considered taxable income, as GETH now acts in the same way as any other liquid token in the crypto market. A cryptocurrency faucet required for blockchain testing is used to distribute tokens with no real-world value. They are built with the intention of allowing developers to test features without investing any real money. So right now GETH has no real value.
Meanwhile, cryptocoin.com Ethereum is currently trading in tight price ranges, with market participants gearing up for a busy week ahead. The value of ETH has remained unchanged in the last 24 hours, with a price tag of $ 1,599.
