Ethereum (ETH) Needs Real-World Usage to Reach $20K

Ethereum's chances of reaching the $20,000 level are fueling debate among investors and analysts. The success of the Ethereum network is dependent on real-world usage and rising activity

An investor in Ethereum (ETH) thinks that the key to a $20,000 ETH price is practical use.

High fees are normally a disadvantage but they are an indicator of faith in the altcoin, according to Ryan Berckmans. If users are paying more, it is because they trust in the value of the network.

This is something that has been lacking in the past year as DeFi activity has dwindled.

Berckmans makes the comparison with Bitcoin (BTC), which continues to hold value despite 99% of its usage being centralized. He says that Ethereum needs to pay attention to developing its real-world growth if it is to replicate this success.

Investors Can't Buy Growth, Only Price

Restoring high total fees is critical for Ethereum’s price increase. Even if a hypothetical scenario sees $1 trillion in stablecoins on Ethereum’s Layer 1, it wouldn’t be enough without high fees to back it up.

The Ethereum network must prioritize robust growth to ensure that investor confidence is restored. Without this growth, reaching the ambitious target of $20,000 seems unlikely.

Scaling Through Layer 1 And Layer 2

Berckmans says that there needs to be more Layer 1 applications and better integration with Layer 2 solutions. This expansion is vital for sustainable growth.

Ethereum must increase the distribution of its Layer 1 assets to Layer 2s while also diversifying the solutions available on Layer 2. This kind of scaling is essential to accommodate growing network activity and user demand.

Focusing On Utility-Driven Growth

As Ethereum celebrates the 10-year anniversary of its mainnet, Berckmans says that the network has come a long way but still has much further to go.

Ethereum is the most capitalized blockchain by application but will need to scale dramatically to maintain its position. By prioritizing the development of a culture centered around real-world uses and economic development, the crypto asset can build a bridge to its price target.

The Ethereum network is at a crossroads. The altcoin needs to maximize real-world usage and have growth at the top of its agenda. In doing so, it may well hit that much-sought $20,000 target in the future — at least according to Berckmans.