Ethereum's native token (ETH) is on a constant uptrend in price as Bitcoin soars towards new ATHs. The "De-Fi" hype has been the major driving factor for ETH's recent price boost. High network load and high market prices, translates in ridiculously high fees to the end user making "De-Fi" impractical on the Ethereum blockchain. Yet, people continue to buy and "hodl" ETH like there's no tomorrow.
What I can't understand is how ETH has a high price when there's no hard cap established by the developers yet. ETH has an inflationary model where new coins are generated over time. It never hits the ceiling in terms of max supply. This should make ETH less valuable over time. But that's not the case, as ETH sits well above $600 per coin. Am I missing something here? Why is ETH much more expensive than Litecoin? I mean, Litecoin has a deflationary model (unlike Ethereum) with a hard cap of 84 million coins. If we base ourselves on this, Litecoin should've been worth a lot more than Ethereum today.
In order to explain why there is no real "cap" on how high ethereum can get, let me show you a great example totally related to this topic. When this topic was created ethereum was under 800 dollars, it was around 770 dollars and that was basically deemed too high for etheruem, considering the high fee's it should not go any higher without fixing that problem first. Now the price of ethereum is actually 1700 dollars, and the transaction fees were above 20 dollars just a day or two ago, and it is seriously very expensive to this day.
This shows you that ethereum doesn't really have a cap, it is unlimited at this point, sure it could not be 1 million dollars per ethereum, but if you think "it is going down NOW" all the time and it keeps going up one by one, that means you are constantly wrong, it may not skyrocket to 10k+ soon but it will keep going to 1800 to 1900 to 2000 and so forth over time.