Recent events on Feb. 26 have led to Ethereum developers having to purchase Goerli ETH, which is Testnet tokens.
Goerli ETH spikes up to $2
According to a screenshot shared by a concerned user, Goerli ETH traded for more than $2 at one point before dropping to around $1 when it was posted on Twitter.
As a smart contracting platform, Ethereum enables developers to launch dApps in DeFi, NFTs, and other areas. Given the immutability of crypto transactions executed via smart contracts, developers require a testing environment to fine-tune their creations.
The Goerli Testnet on Ethereum provides a platform for developers to test their dapps using test ETH coins from anywhere in the world. It has proven to be a valuable resource for developers over the months.
Transactions posted on the Goerli Testnet, for example, are for testing purposes only, even though the environment simulates actual events on the main net. Transactions do not cross over, and the two networks are distinct. The primary distinction between the Ethereum main net and Goerli is that the latter employs a proof-of-authority consensus algorithm, whereas the former uses a proof-of-stake system. ETH tokens are freely distributed to developers.
Users can connect to the Goerli Testnet using their hardware or software wallets such as MetaMask or Coinbase wallet. These tokens, however, are typically issued at a rate of 0.1 ETH every 12 hours.
Will development in Ethereum(ETH) drop?
Developers should be concerned that Goerli ETH tokens are no longer technically “free” as designed. Goerli eth is trading for ~$0.69. Not nice. Testnet ether is supposed to be free but is being marked up by speculators.
Keyboard warriors will tell you that developers are on board, but they aren’t. Perhaps 0.1% are purchasing for personal consumption. This could have a direct impact on development because creators who want to test their dApps will have to wait for prices to fall even further if they require more coins. According to some analysts, this is due to speculators who have been amassing the test token in anticipation of profiting when prices rise.