ETH 2.0 (Part 3)
How will it affect ETH Price?
Staking up may trigger price rally for Ethereum (ETH) as suggested by the top analyst, however, the big question is whether ETH 2.0 is able to generate such huge demand?
ETH 2.0 has yanked its feet down, but when it is started to be distributed, it could provide the “largest economy shift in society”. Tentatively ETH 2.0 is penned to be launched in July 2020, transforming Ethereum to a fully-fledged staking platform form a no-frills proof-of-work protocol.
A bull run can be catalyzed for Ether (ETH) from this fundamental development according to experts.
To support the claim of the bull run, there are THREE (3) Metric Points we call potentially look at,
1) Rapid Address Growth
At this point in time, 40 Million Addresses are holding Ether (ETH) according to the on-chain data from Glass node. When ETH price reached all of the time high of close to $1,400 somewhere around Q1 2018, the Ethereum addresses were below 10 million. But the addresses have gradually increased by 350% even though the ETH price dropped by 85% of the record high of Q1 2018.
2) Rising Market Activity
With the launch of ETH 2.0, it allows users to be a staking agent by transferring 32 ETH to a contract. This will result in approximately 4.6% to 10.3% in rewards (Myers 2020). At the same 32 ETH is the maximum amount of ETH can be a stake, it cannot go more than that. And those rewards are worth of $7,520 today’s price of 1 ETH. Thus, these results noticeably rise in ETH demand in recent months.
3) Rising User Activity
The total consumption of gas on Ethereum has also reached a record high based on the data from Etherscan.io. On May 23rd, the daily gas consumption hit 61 billion double that of January 2019. This number is also suggesting that level of user activity on the Ethereum blockchain network is surging in anticipation of Ethereum 2.0.
With all these THREE Metric Points considered, this could potentially provide an insight into how ETH price will react towards the launch of ETH 2.0 as well as offering the stimulus that ETH and its holder been hoping for.
