Traders on the Goerli testnet have caused a stir by driving up the price of testnet ether to $1.60 on Feb. 25. This sudden surge in value was fueled by speculation over a token that is designed to be worthless. Cross-chain platform LayerZero created a system that allows Goerli's testnet ether to be traded and swapped between the Ethereum mainnet and the Goerli testnet, providing developers with a more convenient way of buying testnet ether than the traditional method of using faucets or asking testnet developers for coins.
However, critics have warned that monetizing the native currency of a testnet is not a suitable approach. Testnets are designed to have no value, enabling the network to support pre-production testing. Monetizing testnet ether could render it less suitable for its main purpose. Polygon Chief Information Security Officer Mudit Gupta took to Twitter to voice his concern, stating that "This is the start of the end of Goerli testnet. It served us well. Testnet ether is supposed to be free, but is being marked up by speculators."
Testnet ether on Goerli was trading at around $0.15 last week but soared to a peak of $1.60 on Saturday. Although the token has since traded downward, it still retains a value of around $0.37. The distribution of testnet ether on Goerli is in the hands of a few validators, and if these developers were to sell a large number of tokens at once, they could significantly impact the market, adding an element of risk.
Ethereum developers have proposed a solution to address this issue by building a new testnet called Holli. This new system would make it easier for developers to acquire testnet ether, reducing the need for a secondary market where tokens must be purchased. While the sudden surge in value of testnet ether on Goerli may be exciting for traders, it could ultimately have negative consequences for the testnet itself. As such, the proposed solution could help to ensure the continued stability and effectiveness of Ethereum's testing infrastructure.