By Tobi Loba
The final launch of Ethereum 2.0 will play out in a matter of months. As the big launch approaches, some cryptocurrency analysts are of the opinion that the upgrade could initiate a major bull run, and trigger finance transformation in the market.
In a blog post, an analyst, who is a partner at MetaCartel Ventures DAO and strategy developer at DuckDuckGo, Adam Cochran, stressed various points on how Ethereum 2.0 “could prove to be the largest economic shift in society”.
He firmly stated that staking is liable to drive a big Ethereum supply shock. He said the dependable staking rewards of 3-5% would attract capital from large investors until relatively 30% of the total supply is locked up.
Cochran added that the forthcoming ETH burn mechanism will contribute to the diminishing supply on markets.
He believes that this supply shock will trigger FOMO buying among retail investors that have no interest in technical analysis.
He said,
“With no stop-gap this time around, that means these users can all FOMO at the same time. All it takes is one crazy MSNBC headline about Ethereum growth to remind them about their Coinbase account, and the retail investors create a flurry.”
Ethereum 2.0 is Capable of Transforming Finance
Alex Batlin, the founder and CEO of the cryptocurrency custody platform, Trustology, also added his own opinion regarding the expected impact of the launch of Ethereum 2.0 on the market, while in a conversation with Cointelegraph.
Batlin argued that the impact of the launch of ETH 2.0 will go beyond price fluctuations, believing that the upgrade will offer the necessary scalability needed to support the mainstream adoption of decentralized finance (DeFi) protocols.
He said
“For DeFi to really work, we need to get from twenty to one thousand to maybe a couple of thousand transactions per minute, and then we start to get really serious. And ETH 2.0 is getting there. If you look at the specs, it’s pretty exciting.”
Batlin also believes that DeFi would become the predominant mechanism by which we do finance if Ethereum 2.0 keeps up its current trajectory.
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the assumptions on which this ‘analyst’ bases his prediction are spectacularly wrong.
He assumes that institutional investors will regard ethereum on par with treasuries when it comes to stability and security. The analyst must have been on some very strong dr*gs when he came up with this nonsense.
the analyst also assumes exponential transaction growth but everything points towards the contrary. The amount of transactions does grow but the amount of daily active users is pretty stagnant. Ethereum has ca. 8000 power users who generate ca. 90% of all transactions. There is virtually 0 actual adoption.
The only thing where ethereum shines is marketing and data manipulation. The ‘analyst’ is a typical example of this ethereum hussle.