Ethereum (ETH) has recently continued to rise, approaching the historical high of 2021. However, influenced by the US PPI data exceeding expectations, the cryptocurrency market experienced a significant pullback. ETH was also affected by this pullback, dropping from $4,700 to $4,480.
ETH then rebounded to around the $4,600 level. Although people still expect Ethereum to surpass its historical record in the short term, Ethereum co-founder Vitalik Buterin made an important statement.
In an interview with Bankless, Buterin discussed the fundamental role of ETH within the ecosystem and stated that ETH is the unified core of the Ethereum network.
Buterin stated that ETH is key to the largest consensus in the economic aspect of the Ethereum ecosystem, helping to unite the entire Ethereum community.
Buterin believes that due to these key reasons, it is crucial for ETH to maintain its position within the ecosystem.
Despite various debates about the source of ETH's value, Ethereum remains at the core of the financial system.
Transaction fees, network effects, and other factors provide support for ETH, and efforts should be made to strengthen the Ethereum ecosystem and ETH from these perspectives in the future.
Many may remember that Vitalik Buterin recently commented on the growing trend of fund management companies focusing on ETH. While supporting this trend, Buterin also warned that excessive leverage could trigger a gradual collapse in ETH prices.
Buterin stated that holding ETH in corporate treasuries is valuable and can help more investors access it. However, he warned that if this trend evolves into an 'over-leveraged game,' it could pose risks to the Ethereum ecosystem.
