A report by top Ethereum stakeholders forecasts ETH at $8,000 by June 2025, with even more ambitious projections suggesting ETH could reach $706,000 in the long term, drawing a comparison to the current $85 trillion oil market. However, the analogy of ETH as 'digital oil' faces significant challenges. Competing Layer 1s like Solana and Sui may also claim their assets as digital oil. Moreover, major Ethereum users are migrating to gas-optimized alternatives, weakening the case for ETH's dominance. Even estimates of data availability costs on Ethereum indicate that rollups utilizing alternative data availability layers can be significantly cheaper, reducing the cost for processing transactions. Critics suggest that while ETH has potential as a global reserve asset, its acceptance as such may be difficult for institutional investors, leading to skepticism around its 'digital oil' labeling. The overall argument for ETH's position in the crypto economy appears tenuous and may not hold up against market evolution.

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