Ethereum Foundation's Justin Drake: The appreciation of ETH boils down to traffic and monetary premium, which is crucial for the success of Ethereum

ChainCatcher message, Ethereum Foundation member Justin Drake answered the question "Does the EF think the continued appreciation of ETH assets is important?" during the AMA.

Justin Drake stated: "My personal view is that the appreciation of ETH is crucial for the success of Ethereum. If ETH does not indeed become the programmable currency of the internet, Ethereum cannot become the settlement layer of the value internet. The currency premium will only increase with the scale of a particular asset (e.g., trillions of dollars). Such currency premium is needed to: underwrite trillions of dollars of decentralized stablecoins ('economic bandwidth'), provide indisputable security, even from nation-states ('economic security'), and attract the attention of all major economic participants ('economic significance')."

Additionally, Justin Drake also mentioned: "The value appreciation of ETH boils down to traffic and currency premium. For traffic, the important metric is total fees, not the fee per transaction. The successful outcome for Ethereum will be 10 million transactions per second, which can provide billions of dollars in daily revenue even if the fee per transaction is below a cent. For example, $0.002/tx would provide about $2B/day in revenue. For currency premium, the important metric is the percentage of ETH used as collateral, such as underwriting DeFi."